Mechanisms that regulate the formation of membrane-less cellular organelles such as neuronal RNA granules and stress granules have gained increasing attention over the past years. These granules consist of RNA and a plethora of RNA-binding proteins. Mutations in RNA-binding proteins have been found in neurodegenerative diseases such as Amyotrophic Lateral Sclerosis (ALS) and Frontotemporal Dementia (FTD). Performing pulldown experiments and subsequent mass spectrometry from mouse brain lysate, we discovered that the de-ubiquitylating enzyme OTU domain containing protein 4 (OTUD4) unexpectedly is part of a complex network of multiple RNA-binding proteins, including core stress granule factors such as FMRP, SMN1, G3BP1 and TIA1. We show that OTUD4 binds RNA, and several of its interactions with RNA-binding proteins are RNA-dependent. OTUD4 is part of neuronal RNA transport granules in rat hippocampal neurons under physiological conditions, whereas upon cellular stress, OTUD4 is recruited to cytoplasmic stress granules. Knockdown of OTUD4 in Hela cells resulted in defects in stress granule formation and led to apoptotic cell death. Together, we characterize OTUD4 as a new RNA-binding protein with a suggested function in regulation of translation.