The DNA mismatch repair protein PMS2 was recently found to encode a novel endonuclease activity. To determine the biological functions of this activity in mammals, we generated endonuclease-deficient Pms2 E702K knock-in mice. Pms2 EK/EK mice displayed increased genomic mutation rates and a strong cancer predisposition. In addition, class switch recombination, but not somatic hypermutation, was impaired in Pms2 EK/EK B cells, indicating a specific role in Ig diversity. In contrast to Pms2 −/− mice, Pms2 EK/EK male mice were fertile, indicating that this activity is dispensable in spermatogenesis. Therefore, the PMS2 endonuclease activity has distinct biological functions and is essential for genome maintenance and tumor suppression.DNA mismatch repair | B cell lymphoma | class switch recombination | somatic hypermutation | spermatogenesis P MS2 is an essential component of DNA mismatch repair (MMR) complexes, which play an important role in maintaining genetic stability. MMR functions primarily in the detection and repair of mismatched bases that result from erroneous replication, and also plays important roles in DNA damage response, genetic recombination, control of meiotic progression, and generation of antibody diversity (1). During MMR, heterodimeric MutS homolog (MSH) complexes, consisting of either MSH2 and MSH6 (MutSα) or MSH2 and MSH3 (MutSβ), bind to mismatched bases. On binding, a conformational change in the MutS complexes activates downstream events and leads to the recruitment of MutL homolog (MLH) complexes consisting of either MLH1 and PMS2 (MutLα) or MLH1 and MLH3 (MutLγ). MutLα interacts with the MutS complexes via MLH1, and this interaction is essential for the coordination of downstream repair events, including excision of the mismatch carrying strand and its resynthesis (2, 3).Important insights into the role of MutLα in MMR came from biochemical studies of reconstituted human MMR (4, 5), which showed that PMS2 is a latent endonuclease that introduces additional nicks into the discontinuous DNA strand of nicked heteroduplex substrates. This activity is dependent on the integrity of a highly conserved metal-binding motif found in many MutL homologs, including MLH3. MutLα appears to play an essential role in 3′-directed MMR, where the bias for incision on the distal side of the mismatch results in a 5′ entry site for MutSα-activated Exo1. For 5′-directed MMR, however, several studies in both the reconstituted human MMR system and MutLα-deficient cells have shown that MutLα is not essential, and that a purified system consisting of MutSα, Exo1, and RPA is sufficient to support 5′-directed MMR (6, 7). Studies in yeast have further delineated roles of the PMS2 endonuclease activity in DNA repair, recombination, and the DNA damage response (5,8,9).Pms2 −/− mice (10) showed an increase in base substitution and insertion/deletion mutation frequencies at both a reporter locus and microsatellite sequences, with a higher proportion of frameshift mutations compared with other MMR knockout models, such as...