Plays an important role in the cytoplasmic envelopment of tegument proteins and capsids during the assembly and egress processes. Participates also in viral entry at the fusion step probably by regulating the core fusion machinery. Interacts with cytoplasmic envelopment protein 2; this interaction is essential for the proper localization of each protein to the assembly complex and thus for the production of infectious virus. Virion membrane-associated tegument protein. Associates with host membrane lipids rafts. During virion morphogenesis, this protein probably accumulates in the endosomes and trans-Golgi where secondary envelopment occurs. It is probably transported to the cell surface from where it is endocytosed and directed to the trans-Golgi network (TGN). Myristoylation and palmitoylation (probably on one or more of the nearby cysteines at the N-terminus) enable membrane-binding and Golgi apparatus-specific targeting and are essential for efficient packaging. Phosphorylated. Phosphorylation does not seem to be required for recycling to the host Golgi apparatus. Packaging is selective for underphosphorylated forms. Belongs to the herpesviridae cytoplasmic envelopment protein 3 family.