Rad54 is a key component of the eukaryotic recombination machinery. Its presence in DNA strand exchange reactions in vitro results in a significant stimulation in the overall reaction rate. Using untagged Rad54, we show that this stimulation can be attributed to enhancement of the formation of a key reaction intermediate known as DNA networks. Using a novel, single DNA molecule, dualoptical tweezers approach we show how Rad54 stimulates DNA network formation. We discovered that Rad54 oligomers possess a unique ability to cross-bridge or bind dsDNA molecules positioned in close proximity. Further, Rad54 oligomers rapidly translocate dsDNA while simultaneously inducing topological loops in the DNA at the locus of the oligomer. The combination of the crossbridging and dsDNA translocation activities of Rad54 stimulates the formation of DNA networks, leading to rapid and efficient DNA strand exchange by Rad51.