It was shown recently that retrovirus transactivators interact with transcriptional coactivators, such as histone acetyltransferases (HATs). Foamy viruses (FVs) direct gene expression from the long terminal repeat and from an internal promoter. The activity of both promoters is strictly dependent on the DNA-binding transactivator Tas. Recently, it was shown that Tas interacts with the HATs p300 and PCAF. Based on these findings, it is demonstrated here that PCAF has the ability to acetylate Tas in vitro and in vivo. Tas acetylation resulted in enhanced DNA binding to the virus promoters. In vitro transcription reactions on non-chromatinized template showed that only acetylated Tas enhanced transcription significantly. These results demonstrate that acetylation of the FV transactivator Tas may be an effective means to regulate virus transcription.