Aberrant transcription‐associated
RNA
:
DNA
hybrid (R‐loop) formation often causes catastrophic conflicts during replication, resulting in
DNA
double‐strand breaks and genomic instability. Preventing such conflicts requires hybrid dissolution by helicases and/or
RN
ase H. Little is known about how such helicases are regulated. Herein, we identify
DDX
5, an
RGG
/
RG
motif‐containing
DEAD
‐box family
RNA
helicase, as crucial player in R‐loop resolution.
In vitro
, recombinant
DDX
5 resolves R‐loops in an
ATP
‐dependent manner, leading to R‐loop degradation by the
XRN
2 exoribonuclease.
DDX
5‐deficient cells accumulate R‐loops at loci with propensity to form such structures based on
RNA
:
DNA
immunoprecipitation (
DRIP
)‐
qPCR
, causing spontaneous
DNA
double‐strand breaks and hypersensitivity to replication stress.
DDX
5 associates with
XRN
2 and resolves R‐loops at transcriptional termination regions downstream of poly(A) sites, to facilitate
RNA
polymerase
II
release associated with transcriptional termination. Protein arginine methyltransferase 5 (
PRMT
5) binds and methylates
DDX
5 at its
RGG
/
RG
motif. This motif is required for
DDX
5 interaction with
XRN
2 and repression of cellular R‐loops, but not essential for
DDX
5 helicase enzymatic activity.
PRMT
5‐deficient cells accumulate R‐loops, resulting in increased formation of γH2
AX
foci. Our findings exemplify a mechanism by which an
RNA
helicase is modulated by arginine methylation to resolve R‐loops, and its potential role in regulating transcription.