Characterization of the ability of human interferons (IFNs) to rapidly induce genes led to the identification of the first two members of the STAT (signal transducers and activators of transcription) family, Stati and Stat2. To study the unique role of this transcription factor in IFN signaling under more physiological conditions, murine Stat2 was isolated and found to be surprisingly divergent. This divergence was most striking in the C-terminal transcriptional activation domain. Studies on murine Stat2 indicate that it functions in IFN signaling. This includes IFN-αdependent activation, nuclear translocation, DNA binding and activation of reporter genes. However, the profound divergence at the C-terminus suggests that murine Stat2 may have evolved to mediate some unique functions as well. To explore this possibility, proteins that interact with the C-termini of murine and human Stat2 were examined. These studies indicate that the murine and human C-termini interact with an overlapping, but distinct set of proteins.