DsRed, a tetrameric fluorescent protein cloned from the Discosoma genus of coral, has shown promise as a longer-wavelength substitute for green fluorescent protein (GFP) mutants for in vivo protein labeling. Bulk and single-molecule studies of the recombinant protein revealed that the DsRed chromophore shows high stability against photobleaching as compared to GFP mutants. Stark modulation spectra confirm that the electronic structure of the DsRed chromophore is similar to that of GFP. However, the tetrameric nature of DsRed leads to intersubunit energy transfer, as evidenced by the molecule's unusually low fluorescence anisotropy when immobilized (0.23 +/- 0.02). This value is approximately consistent with an estimate of the energy transfer rates based on preliminary crystallographic information. The fluorescence emission bleaches at a rate linear in the applied excitation intensity, implying that the cessation of emission during pumping at 532 nm is light-driven and, consistent with the tetrameric structure, several photobleaching "steps" were observed for individual complexes. Because more photons are emitted before bleaching, this study suggests that DsRed may be superior to some GFP-based labeling technologies as long as tetramerization is not an issue in physiological studies.