Multifunctional protein involved in chlorophyll synthesis, plastid-to-nucleus retrograde signaling and abscisic acid (ABA) perception. In chlorophyll synthesis, catalyzes the insertion of magnesium ion into protoporphyrin IX to yield Mg-protoporphyrin IX. The reaction takes place in two steps, with an ATP-dependent activation followed by an ATP-dependent chelation step. In addition to its function in the Mg-chelatase enzyme, is required for the plastid-to-nucleus retrogade signaling. The plastid-to-nucleus signal plays an important role in the coordinated expression of both nuclear- and chloroplast-localized genes that encode photosynthesis-related proteins. Has a role in mediating ABA signaling in stomatal guard cells and during seed germination.