Abstract Nuclear speckles (NS) and paraspeckles (PS) are adjacent condensates with distinct protein composition, with serine-arginine-rich splicing factors (SRSFs) concentrated in NS. Surprisingly, we find that SRSF5 is present in both. Combining super-resolution imaging, proximity proteomics and iCLIP, we show that SRSF5 binds with PS core proteins to the PS-scaffold RNA NEAT1 and locates between PS spheres. Acute SRSF5 depletion results in reduced PS with differently packaged NEAT1 . Under stress, SRSF5’s association with PS increases, and without SRSF5, PS cluster assembly is impaired. Interfering with binding to purine-rich RNAs even causes PS-NS fusion. In an intriguing over-compensation, longer SRSF5 depletion reduces TDP-43 levels via premature polyadenylation, leading to NEAT1 isoform switching and more PS. We propose that SRSF5 forms a stress-specific PS shell and acts as a glue for PS clusters. Additionally, we uncover SRSF5 as a novel regulator of TDP-43 and demonstrate how acute depletion distinguishes direct from compensatory effects. Highlights NS protein SRSF5 associates with PS shells and enriches between PS spheres SRSF5 binds the PS-scaffold RNA NEAT1 and ensures proper NEAT1 packaging SRSF5 association with PS increases under stress and promotes cluster formation Interfering with binding to purine-rich RNAs causes the fusion of PS and NS Acute SRSF5 depletion reveals compensatory effects on PS assembly and dynamics SRSF5 regulates TDP-43 levels via premature polyadenylation