HP1Hsα-containing heterochromatin is located near centric regions of chromosomes and regulates DNA-mediated processes such as DNA repair and transcription. The higher-order structure of heterochromatin contributes to this regulation, yet the structure of heterochromatin is not well understood. We took a multidisciplinary approach to determine how HP1Hsα-nucleosome interactions contribute to the structure of heterochromatin. We show that HP1Hsα preferentially binds histone H3K9Me3-containing nucleosomal arrays in favor of non-methylated nucleosomal arrays and that nonspecific DNA interactions and pre-existing chromatin compaction promote binding. The chromo and chromo shadow domains of HP1Hsα play an essential role in HPlHsQ-nucleosome interactions, whereas the hinge region appears to have a less significant role. Electron microscopy of HP1Hsα-associated nucleosomal arrays showed that HP1Hsα caused nucleosome associations within an array, facilitating chromatin condensation. Differential sedimentation of HP1Hsα-associated nucleosomal arrays showed that HP1Hsα promotes interactions between arrays. These strand-to-strand interactions are supported by in vivo studies where tethering the Drosophila homologue HP1a to specific sites promotes interactions with distant chromosomal sites. Our findings demonstrate that HP1Hsα-nucleosome interactions cause chromatin condensation, a process that regulates many chromosome events. [ABSTRACT FROM AUTHOR]