Elements related to the Tcl-like Minos mobile element have been cloned from Drosophila hydei and sequenced. Southern blot and sequence analyses show that (01 the elements are actively transposing in the Drosophila hydei germ line, (it) they are characterized by a striking degree of sequence and size homogeneity, and (ii) like Tcl, they insert at a TA dinucleotide that is probably duplicated during the process. The nucleotide sequences of two elements, Minos-2 and Minos-3, differ at only one position from each other and contain two nonoverlapping open reading frames that are separated by a putative 60-nucleotide intron. The amino-terminal part of the Minos putative transposase shows sequence similarity to the paired DNA-binding domain. Forced transcription of a modified Minos element that was introduced into the Drosophila melanogaster germ line by P element-mediated transformation resulted in the production of accurately spliced polyadenylylated RNA molecules. It is proposed that Minos-2 and/or Minos-3 may encode an active transposase containing an amino-terminal DNA-binding domain that is distantly related to the paired DNA-binding domain.Mobile elements belonging to the Tcl-like family have been identified so far in nematodes, insects, and fish (1-7). They are all characterized by a relatively small length (1.6-1.8 kb), the presence of inverted terminal repeats of various sizes and sequences, and significant sequence similarities in the region between the repeats, which corresponds to the gene encoding transposase.A common characteristic of elements capable of transposing autonomously is the presence of a gene encoding transposase, a protein directly involved in the transposition. With the exception of Tcl, TCb1, and Bari-i, the elements of the family that have been sequenced so far do not encode active transposases, having accumulated nonsense and frameshift mutations in their putative transposase genes. Tcl, a 1611-bp element with 54-bp perfect inverted terminal repeats, contains a gene, TcJA, encoding a transposase that binds specifically at the inverted repeats at the ends of the element and induces transposition of endogenous Tcl elements when overexpressed in Caenorhabditis elegans (8). The Tcl element exhibits a high degree of size and sequence homogeneity, in contrast to other eukaryotic transposons (9-11) that are heterogeneous in size. Another characteristic of Tcl is that it always inserts into a TA sequence, possibly creating a duplication of the dinucleotide in the process (12, 13).Minos has been identified as a dispersed repetitive sequence inserted within the transcribed spacer in one of the repeats of the rDNA locus of Drosophila hydei (6). The element is characterized by 255-bp perfect inverted terminal repeats and the presence of two long nonoverlapping open reading frames (ORFs) on the same strand; the longest of the ORFs (ORF2) shows -=30% sequence identity with TcJA but does not begin with an ATG codon (6). It appears, therefore, that the cloned element represents a defective membe...