Eukaryotic translation is believed to be regulated via the phosphorylation of specific eukaryotic initiation factors (eIFs), including one of the cap-binding complex proteins, eIF-4E. We show that in the yeast Saccharomyces cerevisiae, both eIF-4E and another cap-binding complex protein, p20, are phosphoproteins. The major sites of phosphorylation of yeast eIF-4E are found to be located in the N-terminal region of its sequence (Ser2 and Ser15) and are thus in a different part of the protein from the main phosphorylation sites (Ser53 and Ser209) proposed previously for mammalian eIF-4E. The most likely sites of p20 phosphorylation are at Ser91 and/or Ser154. All of the major sites in the two yeast proteins are phosphorylated by casein kinase II in vitro. Casein kinase II phosphorylation of cap-complex proteins should therefore be considered as potentially involved in the control of yeast protein synthesis. Mutagenesis experiments revealed that yeast eIF-4E activity is not dependent on the presence of Ser2 or Ser15. On the other hand, we observed variations in the amount of (phosphorylated) p20 associated with the cap-binding complex as a function of cell growth conditions. Our results suggest that interactions of yeast eIF-4E with other phosphorylatable proteins, such as p20, could play a pivotal role in translational control.