We generated a Cd-sensitive insertional mutant, Cds18, in Chlamydomonas reinhardtii and elucidated the deletion of a 10 kb fragment containing the promoter and a portion of the coding region for CrMRP2 gene that silenced the transcription of CrMRP2 in mutant Cds18. The association between CrMRP2 and Cd sensitivity was confirmed by complementing mutant Cds18 with a cloned genomic DNA fragment containing the promoter and complete coding sequence for CrMRP2. The genomic region and the full-length cDNA for CrMRP2 were cloned and sequenced. Computer searches detected the significant resemblance of CrMRP2 with HsMRP1, AtMRP3 and ScYCF1, in Homo sapiens, Arabidopsis thaliana and Saccharomyces cerevisiae, respectively. All are members of the multidrug resistance-associated protein (MRP)/cystic fibrosis transmembrane conductance regulator (CFTR) subfamily of ATP-binding cassette (ABC) transporters. When the cDNA of CrMRP2 was cloned into the yeast expression vector pEGKT and transformed into the yeast mutant strain DTY168 lacking ScYCF1, it restored the function of ScYCF1, a yeast vacuolar glutathione (GSH)-conjugate ABC transporter. A putative vacuolar-targeting motif (T/I/K)LP(L/K/I) was detected in the N-terminal part of CrMRP2. In wild-type C. reinhardtii, CrMRP2 transcription was significantly up-regulated upon Cd treatment. Comparing with mutant Cds18, the wild-type algal cells accumulated and sequestered more Cd in the stable high molecular weight (HMW) phytochelatin (PC)-Cd complex; the labile low molecular weight (LMW) PC-Cd complex was detected in mutant Cds18 at an earlier stage of Cd treatment. This study demonstrated the expression of CrMRP2 in C. reinhardtii and implicated its function in the formation/accumulation of stable HMW PC-Cd complex.