Adenoviruses use the short noncoding RNA transcript virusassociated (VA) RNA I to counteract two critical elements of the host cell defense system, innate cellular immunity and RNA interference, mediated by the double-stranded RNA-activated protein kinase (PKR) and Dicer/RNA-induced silencing complex, respectively. We progressively shortened the VA RNA I terminal stem to examine its necessity for inhibition of PKR. Each deletion, up to 15 bp into the terminal stem, resulted in a cumulative decrease in PKR inhibitory activity. Remarkably, however, despite significant apparent destabilization of the RNA structure, the final RNA mutant that lacked the entire terminal stem (TS⌬21 RNA) efficiently bound PKR and exhibited wild-type inhibitory activity. TS⌬21 RNA stability was strongly influenced by solution pH, indicating the involvement of a protonated base within the VA RNA I central domain tertiary structure. Gel filtration chromatography and isothermal titration calorimetry analysis indicated that wild-type VA RNA I and TS⌬21 RNA form similar 1:1 complexes with PKR but that the latter lacks secondary binding site(s) that might be provided by the terminal stem. Although TS⌬21 RNA bound PKR with wild-type K d , and overall change in free energy (⌬G), the thermodynamics of binding (⌬H and ⌬S) were significantly altered. These results demonstrate that the VA RNA I terminal stem is entirely dispensable for inhibition of PKR. Potentially, VA RNA I is therefore a truly bi-functional RNA; Dicer processing of the VA RNA I terminal stem saturates the RNA interference system while generating a "mini-VA RNA I " molecule that remains fully active against PKR.The interferon-induced double-stranded RNA (dsRNA) 4 -activated protein kinase (PKR) is a key component of the innate immune response that forms the first line of intracellular defense against viral infection (1, 2). PKR regulates translation initiation by phosphorylating the eukaryotic initiation factor 2 (eIF2) ␣-subunit at serine 51. The large increase in affinity of the phosphorylated form for its guanosine exchange factor (eIF2B) results in competitive inhibition and the reduction in available eIF2⅐GTP⅐Met-tRNA i Met ternary complex leads to a sharp reduction in both cellular and viral protein expression (3-5). Viruses devote large portions of their genomes to evading such host defenses and have evolved many different strategies to counter the PKR-mediated response (6). For example, Epstein-Barr virus and adenovirus produce large quantities of short noncoding RNA transcripts, EBER (7, 8) and VA RNAs, respectively (9, 10), that bind directly to PKR but inhibit rather than activate the kinase activity.All adenoviruses encode at least one VA RNA sequence (VA RNA I ) of ϳ160 nucleotides that is transcribed by the host RNA polymerase III and accumulates to very high concentrations in the late stages of infection (11, 12). Although VA RNA I sequences from different virus serotypes vary considerably, all can be drawn in a similar extended structure consisting of three major ...