Signal recognition particle-dependent targeting of secretory proteins to the endoplasmic reticulum membrane is predominant in the yeast Yarrowia lipolytica. A conditional lethal mutant of the SCR2-encoded 7S RNA provided the first in vivo evidence for involvement of this particle in cotranslational translocation (He, F., Beckerich, J. M., and Gaillardin, C. M. (1992) J. Biol. Chem. 267, 1932-1937). In order to identify partners of 7S RNA or signal recognition particle in their function, we selected synthetic lethal mutations with the 7S RNA mutation (sls). The SLS1 gene, cloned by complementation of the sls1 mutant growth defect, encodes a 426-amino acid polypeptide containing a NH2-terminal signal peptide and a COOH-terminal endoplasmic reticulum (ER) retention motif. The SLS1 gene product behaves as a lumenal protein of the ER. Sls1p was sedimented with membrane-rich organelles and was resistant to protease degradation without prior membrane solubilization. Immunofluorescence microscopy showed a typical endoplasmic reticulum perinuclear staining. Co-immunoprecipitation revealed that Sls1p resides close to the major translocation apparatus component, Sec61p. Deletion of the SLS1 gene led to a temperature-sensitive growth phenotype. Synthesis of several secretory proteins was shown to be specifically reduced in delta sls1 cells. We propose that Sls1p acts in the preprotein translocation process, interacting directly with translocating polypeptides to facilitate their transfer and/or help their folding in the ER.