INTRODUCTION Vaccinia virus (VV) encodes a variety of factors that function in the evasion of host defenses. Included in this list are decoy receptors for various interferons as well as inhibitors of interferon inducible antiviral enzymes (1, 29, 35). As a consequence, VV has been shown to be resistant to the antiviral action of interferon in most cell lines (40). VV has also been shown to rescue the replication of interferon sensitive viruses such as vesicular stomatitis virus (VSV) and encephalomyocarditis virus (EMCV) (37, 38). The interferon resistance exhibited by VV is due to its ability to inhibit the activation of interferon inducible antiviral enzymes like dsRNA dependent protein kinase (PKR) and 2’5’ oligo adenylate synthetase (OAS) (5, 9, 34). Both enzymes are induced by interferon in an inactive state, and require the presence of dsRNA for activation (7, 11). The activation of PKR leads to phosphorylation of the eukaryotic translation initiation factor (eIF2) on its subunit which results in the inhibition of translation initiation in infected cells (30, 39). The activation of OAS in turn leads to activation of a latent endoribonuclease (RNase L). Upon activation RNase L cleaves rRNA and mRNA in the cell, thereby leading to an arrest of protein synthesis in the infected cell. The E3L gene is one of the key interferon resistance genes encoded by VV that confers a broad host range phenotype to VV in cells in culture (5). Recently the role of E3L has been established as a virulence factor in VV pathogenesis in mice (6). The E3L gene encodes a 25 KDa protein that contains a Z-DNA binding domain in its amino terminus and a single copy of a dsRNA-binding motif (dsRBM) in its carboxy terminus (6). The ability of the E3L gene product to bind to and sequester dsRNA (via its dsRBM) is thought to be important for inhibiting the activation of the PKR and OAS enzymes (9, 126 10, 34). As a result, there is no inhibition of protein synthesis in the infected cell and the virus continues to replicate. The dsRBM of E3L is conserved among many other dsRNA binding proteins, including PKR and an RNA-specific adenosine deaminase 1 (ADAR1) (24, 27). NMR and crystallography studies of the dsRBM motifs from PKR and other proteins (E.coli RNaseIII and Staufen) reveal the presence of a similar ---- protein topology (14, 26). VV deleted of the E3L gene (VVE3L) can be functionally complemented in cells in culture by expression of other heterologous dsRNA binding proteins such as E.coli RNaseIII, reovirus 3 and the rotavirus NSP3 gene product (4, 18, 33). These proteins are thought to complement the function of the E3L gene product, at least in part, by virtue of their ability to bind and sequester the dsRNA made during vaccinia infection. In this study we examined whether the human ADAR1 gene product could functionally replace the vaccinia E3L gene product. ADAR1 is a cellular, interferon inducible enzyme that belongs to a family of RNA editing enzymes that catalyze the C-6 deamination of adenosine (A) to yield inosine (I) in cellular pre-mRNAs as well as viral RNAs (2, 27). Because inosines are interpreted as guanosines during translation editing can frequently lead to codon changes in mRNA that in turn alters protein function (19, 32). ADARs are implicated in two different types of editing processes that require double stranded regions in the RNA. First, A to I editing is found at multiple sites within some viral RNAs, as seen in polyoma virus antisense RNA and measles virus RNA (3, 8, 16). The second type of editing is highly site specific and is limited to few adenosines in 127 both viral RNAs and cellular pre-mRNAs. This includes hepatitis delta virus RNA and glutamate receptor pre-mRNA in higher vertebrates (28, 32). The interferon inducible form of ADAR1 consists of three distinct copies of the conserved dsRNA binding motif (RI, RII and RIII) in the central region and two Z-DNA binding domains in the amino terminus (12, 20, 21). The deaminase activity of ADAR1 is located in the carboxy terminus of the protein. ADAR1 and E3L are very similar in the organization of their domains in that both proteins possess Z-DNA binding and dsRNAbinding motifs (22). Because of the high degree of homology between ADAR1 and E3L proteins we asked the question whether ADAR1 could functionally replace the loss of E3L. In order to investigate whether the deaminase function of ADAR1 was required to complement the function of E3L two different forms of ADAR1 were expressed from the E3L locus of VVE3L; wild type ADAR1, which is capable of both binding and editing dsRNA, and a catalytically inactive mutant of ADAR1 (ADAR1cat-) which retains its ability to bind to dsRNA but is incapable of carrying out its editing function because of two point mutations (H910Q and E912A) in the catalytic domain (21). Our results suggest that the restricted host range phenotype of VVE3L was partially restored by wild type ADAR1. ADAR1cat- could rescue the phenotype of VVE3L in HeLa cells to a less extent than wild type ADAR1. In vivo experiments have shown that wild type ADAR1 could partially restore the non neurovirulent phenotype of VVE3L during intracranial infection of mice. This rescue of neurovirulence of VVE3L by wild type ADAR1 was stronger than that of ADAR1cat-. Thus, in addition to dsRNA binding, the 128 ability of ADAR1 to catalyze the deamination of adenosines to inosines in dsRNA appears to be necessary to partially restore the loss of E3L in VVE3L.