  The spatial organization of DNA involves DNA loop extrusion and the formation
of protein-DNA condensates. While the significance of each process is
increasingly recognized, their interplay remains unexplored. Using molecular
dynamics simulation and theory we investigate this interplay. Our findings
reveal that loop extrusion can enhance the dynamics of condensation and
promotes coalescence and ripening of condensates. Further, the DNA loop enables
condensate formation under DNA tension and position condensates. The concurrent
presence of loop extrusion and condensate formation results in the formation of
distinct domains similar to TADs, an outcome not achieved by either process
alone.
