The gamma subunit of eukaryotic translation initiation factor 2 is an EF-Tu-like protein that plays an essential role in protein synthesis. We have isolated an eIF-2gamma homolog from the fission yeast Schizosaccharomyces pombe that complements a gcd11 null allele in Saccharomyces cerevisiae. GCD11 is an essential gene that encodes S. cerevisiae eIF-2gamma. Comparison among three eIF-2gamma homologs from humans, S. cerevisiae, and S. pombe, and a putative Drosophila homolog, reveals the presence of a domain N-terminal to the GTP-binding (G) domain that varies in length (relative to EF-Tu) from 12 residues in S. pombe to 89 residues in S. cerevisiae. In S. cerevisiae, these sequences are not essential for function. However, unlike a deletion, a missense mutation in this domain confers a slow growth phenotype and constitutively derepresses expression of the GCN4 transcriptional activator. The eIF-2gamma homologs also contain a partially conserved 35-37 amino acid insertion in the G domain that is absent from EF-Tu and other G proteins. Unlike the variable N-terminal domain, these residues are required for the essential function of eIF-2gamma.