Mutated proteins suppressing the activity of their normal counterparts are termed dominant negative (DN) mutants. When derived from viral sequences, such mutants can display antiviral activity. This strategy has been successfully applied to inhibit replication of herpes simplex virus, human immunodeficiency virus, 1,2 and hepadnaviruses. [3][4][5][6][7][8] Hepadnaviruses are partially double-stranded DNA viruses 9 that include, among others, the duck hepatitis B virus (DHBV), woodchuck hepatitis virus, and human hepatitis B virus. They all share a common replication strategy involving the reverse transcription of a pregenomic RNA intermediate. [10][11][12][13] During virus assembly, pregenomic viral RNA is copackaged along with the viral polymerase into a highly symmetric icosahedral nucleocapsid shell that is made up by core protein dimers. 14 Reverse transcription and second-strand DNA synthesis take place only within intact core particles. We have previously shown that genetically engineered mutants of the DHBV core protein can inhibit viral replication in a DN fashion. The DN mutants were generated by fusing sequences derived from the bacterial -galactosidase (lacZ), green fluorescent protein (GFP), DHBV polymerase (Pol), or DHBV small surface protein (S) to the carboxy terminus of the DHBV core. 7 The mutants reduce the level of all replicative DNA intermediates in a species-specific and dose-dependent manner. All mutants interfere with viral replication at the posttranslational level. It was not clear, however, which step of the viral life cycle is affected by the respective DN mutants. In this report, we provide evidence that DN DHBV core protein mutants can interfere with packaging of the viral pregenome and reverse transcription. Implications for the structure of DHBV nucleocapsids and the design of DN core protein mutants are discussed.