MicroRNAs and siRNAs interact with target sequences in mRNAs, inducing cleavage-and non-cleavage-based gene repression through the RNA-induced silencing complex (RISC) that consists of one of four mammalian Argonaute proteins, Ago1-Ago4. The process of how Dicer substrate small hairpin RNAs (shRNAs) are loaded into different mammalian Agos in vivo is not well established. Here we report that shRNAs are loaded into mammalian Agos in two stepwise processes, physical association and activation, with the latter being the rate-limiting step with noncleaving RISC. We establish that, although RNA duplexes processed from shRNAs bind to Agos in cells with similar affinity, the degree by which the complexes are activated (coupled with the removal of the passenger strand) correlates with the thermodynamic instability of RNA duplexes being loaded rather than the structure of the RNA, as was previously demonstrated in Drosophila. Interestingly, Ago loading of siRNAs is less sensitive to thermostability than that of their shRNA equivalents. These results may have important implications for the future design of RNAi-based therapeutics.RNA interference | gene silencing M icroRNAs (miRNAs) and 21-to 23-nt siRNAs regulate gene expression in almost all eukaryotic organisms. Small RNA-mediated gene regulation is sequence-specific and believed to regulate at least one-half of all protein-encoding mRNAs (reviewed in refs. 1-4).Argonaute proteins (Agos), which directly associate with small RNAs, are the core of all known RNA-induced silencing complexes (RISCs). These proteins are functionally specialized into distinct RNA silencing pathways. In Drosophila, Ago2-RISC is involved in target mRNA cleavage, and Ago1-RISC mediates translational repression (5, 6). The human genome encodes four Ago-like subfamily proteins (Ago1-Ago4) that have redundant functions as negative regulators of gene expression, but only Ago2 has cleavage activity (7-9).In Drosophila, siRNAs and miRNAs are actively sorted into functionally distinct Ago-RISCs based on differences in structure rather than on their biogenesis (10, 11). Perfectly matched duplexes (siRNA-like) are preferentially incorporated into Ago2, and the loading is achieved by cleaving the passenger strand, whereas duplexes with central mismatched bulges (miRNA-like) are sorted to Ago1, and the unselected strand (asterisk strand) is eliminated through a "bypass" pathway, which is sensitive to the structure of the small RNA duplex and independent of the weak cleavage activity of Ago1 (12). A similar sorting mechanism exists in Caenorhabditis elegans, whereby small RNA duplexes with perfectly matched or bulged stems are channeled into RDE-1 and ALG-1, respectively (13). In plants, a different sorting mechanism has been reported. The composition and phosphorylation status of the 5′ nucleotide of small RNA duplexes influences their binding by the different Agos (14,15). In mammalian cells, several studies have shown that miRNAs are similarly associated with four human Agos (7,8,16), suggesting the abse...