Adeno-associated virus (AAV) is a dependent virus of the family Parvoviridae. The gene expression and replication of AAV and derived recombinant AAV (rAAV) vectors are severely limited (>10-fold) by the cellular DNA damage-sensing complex made up of Mre11, Rad50, and Nbs1 (MRN). The AAV genome does not encode the means to circumvent this block to productive infection but relies on coinfecting helper virus to do so. Using adenovirus helper proteins E1B55k and E4orf6, which enhance the transduction of AAV via degradation of MRN, we investigated the mechanism through which this DNA damage complex inhibits gene expression from rAAV. We tested the substrate specificity of inhibition and the contribution of different functions of the MRN complex. Our results demonstrate that both single-and double-stranded rAAV vectors are inhibited by MRN, which is in contrast to the predominant model that inhibition is the result of a block to second-strand synthesis. Exploring the contribution of known functions of MRN, we found that inhibition of rAAV does not require downstream DNA damage response factors, including signaling kinases ATM and ATR. The nuclease domain of Mre11 appears to play only a minor role in inhibition, while the DNA binding domain makes a greater contribution. Additionally, mutation of the inverted terminal repeat of the rAAV genome, which has been proposed to be the signal for interaction with MRN, is tolerated by the mechanism of inhibition. These results articulate a model of inhibition of gene expression in which physical interaction is more important than enzymatic activity and several key downstream damage repair factors are dispensable. A deno-associated virus (AAV) is a member of the genus Dependovirus within the family Parvoviridae. The virion is small (diameter, ϳ20 nm) and consists of a protein nucleocapsid containing a single-stranded DNA (ssDNA) genome of ϳ4.7 kb. The genome carries inverted terminal repeat (ITR) sequences at both ends, which self-anneal to form a T-shaped secondary structure (1, 2). Formation of this structure provides the 3= OH for secondstrand DNA synthesis, as well as the signal for genome packaging. Flanking ITRs are the only feature required in cis for replication and production of the virus. This property is exploited in recombinant AAV (rAAV) vectors, in which the coding region of the genome is replaced with a transgene expression cassette (3). The AAV genome carries two genes encoding replication (Rep) and capsid (Cap) proteins (4). Both are required for replication and packaging of AAV and are provided in trans for production of rAAV vectors. However, these proteins are not sufficient. Wildtype (wt) AAV and rAAV are dependent upon helper virus and host cell proteins for creation of a permissive cellular environment and DNA synthesis machinery, respectively (5, 6).Establishment of a permissive cellular environment for expression and replication of AAV requires mediation of the cellular DNA damage response (DDR). DDR signaling and repair pathways normally function...