Recently, using a well defined nucleosomal assembly system, we demonstrated that high mobility group proteins (HMGs) 14 and 17 can organize nucleosomes into a regular array with a nucleosomal repeat length of 160-165 base pairs in vitro. Interestingly, such a short repeat length has been described for lower eukaryotes and for active chromatin. To begin to investigate how these proteins may prevent the close packing of nucleosomes, assembly reactions were carried out in which the relative amounts of HMGs 14 and 17, histones H2A and H2B, and the N1/N2.(H3, H4) complex were varied in assembly reactions. Under conditions in which histones H2A and H2B were limiting and in the absence of HMGs 14 and 17, micrococcal nuclease digestion of the assembled product produced a ladder of DNA fragments that was much less well defined and which included DNA that was associated with subnucleosomal structures. The apparent repeat length for this chromatin template was around 125 base pairs. Most interestingly, when HMGs 14 and 17 were added to this assembly reaction, "nucleosome-like" structures were reassembled as shown by the restoration of a regular, well defined ladder of DNA fragments upon micrococcal nuclease digestion. The apparent repeat length increased from 125 to approximately 145 base pairs. Analysis of the protein composition of chromatin formed in the presence or absence of HMGs 14 and 17 reveals that HMGs 14 and 17 might be able to substitute for a histone H2A-H2B dimer in a H2A/H2B-deficient nucleosome. The ability to form a regularly spaced nucleosomal template is also lost when excess HMGs 14 and 17 are used in assembly reactions. Spacing can be restored by the addition of poly(glutamate, alanine), a chemical polymer of negative charge, which may indicate that carrier proteins (specific or nonspecific) may be required for the proper incorporation of all chromatin assembly components into chromatin in vivo. Finally, although the mechanism of action is not known, HMGs 14 and 17 can partially overcome inhibition of initiation of transcription caused by the formation of nucleosomal particles deficient in histones H2A and H2B.