The catalytic subunit (␣) of mitochondrial DNA polymerase (pol ␥) shares conserved DNA polymerase and 3 -5 exonuclease active site motifs with Escherichia coli DNA polymerase I and bacteriophage T7 DNA polymerase. A major difference between the prokaryotic and mitochondrial proteins is the size and sequence of the region between the exonuclease and DNA polymerase domains, referred to as the spacer in pol ␥-␣. Four ␥-specific conserved sequence elements are located within the spacer region of the catalytic subunit in eukaryotic species from yeast to humans. To elucidate the functional roles of the spacer region, we pursued deletion and site-directed mutagenesis of Drosophila pol ␥. Mutant proteins were expressed from baculovirus constructs in insect cells, purified to near homogeneity, and analyzed biochemically. We find that mutations in three of the four conserved sequence elements within the spacer alter enzyme activity, processivity, and/or DNA binding affinity. In addition, several mutations affect differentially DNA polymerase and exonuclease activity and/or functional interactions with mitochondrial singlestranded DNA-binding protein. Based on these results and crystallographic evidence showing that the templateprimer binds in a cleft between the exonuclease and DNA polymerase domains in family A DNA polymerases, we propose that conserved sequences within the spacer of pol ␥ may position the substrate with respect to the enzyme catalytic domains.The mitochondrion is the eukaryotic organelle that carries out oxidative phosphorylation, fulfilling cellular requirements for energy production. Disruption of mitochondrial energy metabolism can occur by genetic or biochemical mechanisms and is associated with human disorders including degenerative diseases, cancer, and aging (1). Mutations in both the mitochondrial genome and in nuclear genes whose products have mitochondrial functions are linked to mitochondrial disease syndromes. Nuclear genes include those encoding the adenine nucleotide translocator 1 (2), thymidine phosphorylase (3), mitochondrial DNA helicase (Twinkle) (4), and the catalytic subunit of mitochondrial DNA polymerase (pol 1 ␥) (5). Pol ␥ has also been shown to be a target of oxidative damage, which reduces DNA polymerase activity in the mitochondrial matrix (6).Pol ␥ is the only DNA polymerase known to be required for mitochondrial DNA replication in animals (7). It is a member of the family A DNA polymerase group (8, 9), of which Escherichia coli pol I is the prototype (10). The crystal structures of numerous family A DNA polymerases have been solved, revealing a high degree of structural similarity among its members (11)(12)(13)(14)(15)(16)(17). The interaction between DNA polymerase and template-primer DNA has also been revealed in molecular detail by structural determination of pol:DNA co-crystals and in biochemical studies. The pol domain comprises palm, fingers, and thumb subdomains that are separated from the 3Ј-5Ј exonuclease (exo) domain by a cleft that binds the template-primer. Wher...