The Nipah virus (NiV) phosphoprotein (P) gene encodes the C, P, V, and W proteins. P, V, and W, have in common an amino-terminal domain sufficient to bind STAT1, inhibiting its interferon (IFN)-induced tyrosine phosphorylation. P is also essential for RNA-dependent RNA polymerase function. C is encoded by an alternate open reading frame (ORF) within the common amino-terminal domain. Mutations within residues 81 to 113 of P impaired its polymerase cofactor function, as assessed by a minireplicon assay, but these mutants retained STAT1 inhibitory function. Mutations within the residue 114 to 140 region were identified that abrogated interaction with and inhibition of STAT1 by P, V, and W without disrupting P polymerase cofactor function. Recombinant NiVs were then generated. A G121E mutation, which abrogated inhibition of STAT1, was introduced into a C protein knockout background (C ko ) because the mutation would otherwise also alter the overlapping C ORF. In cell culture, relative to the wild-type virus, the C ko mutation proved attenuating but the G121E mutant virus replicated identically to the C ko virus. In cells infected with the wild-type and C ko viruses, STAT1 was nuclear despite the absence of tyrosine phosphorylation. This latter observation mirrors what has been seen in cells expressing NiV W. In the G121E mutant virus-infected cells, STAT1 was not phosphorylated and was cytoplasmic in the absence of IFN stimulation but became tyrosine phosphorylated and nuclear following IFN addition. These data demonstrate that the gene for NiV P encodes functions that sequester inactive STAT1 in the nucleus, preventing its activation and suggest that the W protein is the dominant inhibitor of STAT1 in NiV-infected cells.Nipah virus (NiV) is a highly lethal member of the family Paramyxoviridae, genus Henipavirus. NiV was first recognized following a 1998-99 outbreak in Southern Malaysia and Singapore (7), and outbreaks have been recognized in India and almost annually in Bangladesh (5, 23). The large Malaysian outbreak was marked by severe, fatal encephalitis with 40% mortality, whereas the smaller, more recent Bangladeshi and Indian outbreaks displayed higher mortality rates (75 to 92%), potential human-to-human transmission, and an increased occurrence of severe respiratory disease (5,17,22). In addition to its high lethality, NiV is unique among paramyxoviruses in that it exhibits a relatively broad host range and is able to infect bats, pigs, humans, cats, dogs, and other species (7,8,12,38).Signal transducer and activator of transcription 1 (STAT1), a member of the STAT family of transcription factors, is a critical component of the JAK/STAT signaling pathways activated by alpha/beta interferon (IFN-␣/), IFN-␥, and other cytokines and growth factors (44). STAT protein activation involves tyrosine phosphorylation by JAK family kinases, resulting in STAT homo-or heterodimerization via SH2 domainphosphotyrosine interactions (10,28,35). This directs the accumulation of STAT proteins in the nucleus, where they are ...