The discovery of molecules required for membrane fusion has revealed a rema
rkably conserved mechanism that centers upon the formation of a complex of
SNARE proteins. However, whether the SNARE proteins or other components cat
alyze the final steps of membrane fusion in vivo remains unclear. Understan
ding this last step depends on the identification of molecules that act lat
e in the fusion process. Here we demonstrate that in Saccharomyces cerevisi
ae, Vac8p, a myristoylated and palmitoylated armadillo repeat protein, is r
equired for homotypic vacuole fusion. Vac8p is palmitoylated during the fus
ion reaction, and the ability of Vac8p to be palmitoylated appears to be ne
cessary for its function in fusion. Both in vivo and in vitro analyses show
that Vac8p functions after both Rab-dependent vacuole docking and the form
ation of trans-SNARE pairs. We propose that Vac8p may bind the fusion machi
nery through its armadillo repeats and that palmitoylation brings this mach
inery to a specialized lipid domain that facilitates bilayer mixing.