PERK and IRE1 are type-I transmembrane protein kinases that reside in the e
ndoplasmic reticulum (ER) and transmit stress signals in response to pertur
bation of protein folding. Here we show that the lumenal domains of these t
wo proteins are functionally interchangeable in mediating an ER stress resp
onse and that, in unstressed cells, both lumenal domains form a stable comp
lex with the ER chaperone BiP. Perturbation of protein folding promotes rev
ersible dissociation of BiP from the lumenal domains of PERK and IRE1. Loss
of BiP correlates with the formation of high-molecular-mass complexes of a
ctivated PERK or IRE1, and overexpression of BiP attenuates their activatio
n. These findings are consistent with a model in which BiP represses signal
ling through PERK and IRE1 and protein misfolding relieves this repression
by effecting the release of BiP from the PERK and IRE1 lumenal domains.