Bacteriophage XP-12, whose DNA contains 34 mol% 5-methylcytosine, induces the synthesis of a unique enzyme, 5-methyl-dCTP deaminase. The substrate for this enzyme, 5-methyl-dCTP, is produced by reactions catalyzed in part by other phage-induced enzymes, and the product of the reaction is dTTP. The deaminase therefore provides a novel pathway for biosynthesis of thymine residues for phage XP-12 DNA. Evidencd is presented that this pathway is used for dTTP synthesis in XP-12-infected Xanthomonas oryzae.