The insect baculovirus chitinase (CHIA) and cathepsin protease (V-CATH) enzymes cause terminal host insect liquefaction, enhancing the dissemination of progeny virions away from the host cadavers. Regulated and delayed cellular release of these host tissue-degrading enzymes ensures that liquefaction starts only after optimal viral replication has occurred. Baculoviral CHIA remains intracellular due to its C-terminal KDEL endoplasmic reticulum (ER) retention motif. However, the mechanism for cellular retention of the inactive V-CATH progenitor (proV-CATH) has not yet been determined. Signal peptide cleavage occurs upon cotranslational ER import of the v-cath-expressed protein, and ER-resident CHIA is needed for the folding of proV-CATH. Although this implies that CHIA and proV-CATH bind each other in the ER, the putative CHIA-proV-CATH interaction has not been experimentally verified. We demonstrate that the amino-terminal 22 amino acids (aa) of Autographa californica multiple nucleopolyhedrovirus (AcMNPV) preproV-CATH are responsible for the entry of proV-CATH into the ER. Furthermore, the CHIA-green fluorescent protein (GFP) and proV-CATH-red fluorescent protein (RFP) fusion proteins colocalize in the ER. Using monomeric RFP (mRFP)-based bimolecular fluorescence complementation (BiFC), we determined that CHIA and proV-CATH interact directly with each other in the ER during virus replication. Moreover, reciprocal Ni/His pulldowns of His-tagged proteins confirmed the CHIA-proV-CATH interaction biochemically. The reciprocal copurification of CHIA and proV-CATH suggests a specific CHIA-proV-CATH interaction and corroborates our BiFC data. Deletion of the CHIA KDEL motif allowed for premature CHIA secretion from cells, and proV-CATH was similarly prematurely secreted from cells along with ⌬KDEL-CHIA. These data suggest that CHIA and proV-CATH interact directly with each other and that this interaction aids the cellular retention of proV-CATH.Baculovirus infection is initiated after the ingestion of food contaminated with occlusion bodies (OBs) containing the infectious enveloped virions. OBs dissolve in the insect midgut and release the embedded virions (7). Baculoviruses in the Alphabaculovirus and Betabaculovirus genera cause systemic infections in their lepidopteran hosts, and progeny OBs are disseminated only after the death of the infected larvae. The release of alpha-and betabaculovirus OBs from the infected larval cadaver into the environment is enabled by the tightly regulated release and activation of the virus-encoded chitinase (CHIA) and cathepsin (V-CATH) enzymes, which act in concert to liquefy the host carcass. The subcellular retention, release, and activation of these two enzymes are coordinated to allow for dissolution only after optimal virus production (11,21,26). Once the host succumbs to the virus infection, viral OBs are liberated from the insect cadaver to facilitate horizontal transmission to other larvae. Most alpha-and betabaculoviruses contain homologues of chiA and v-cath, and several of ...