Matrix (M) proteins of negative-strand RNA viruses play a crucial role throughout the virus life cycle. The functions of the M proteins in virus assembly and morphogenesis and in budding off enveloped virus particles have been extensively studied and well recognized. More recently, reverse genetics experiments with rabies virus (RV), a member of the Rhabdoviridae family, revealed an additional and unexpected function of rhabdovirus M proteins apart from virus assembly, namely, the regulation of RNA synthesis and profoundly affecting the balance of replication and transcription products (13).The viral RNA of nonsegmented negative-strand RNA viruses (order Mononegavirales) is associated with the viral nucleoprotein (N) to form a tight ribonucleoprotein (RNP) complex. Such RNPs are the template for transcription of subgenomic virus mRNAs and for replication of full-length virus RNAs. The latter probably involves concurrent encapsidation of the nascent RNA into RNPs. A constant supply of N protein is therefore a prerequisite for productive replication (1, 28). In contrast, transcription from the RNP does not need a supply of N. Both RNA replication and transcription are performed by the virus-encoded RNP-dependent RNA polymerase, which is composed of a large, catalytically active subunit (L) and a polymerase cofactor, the phosphoprotein P. P also has an important role during replication, as N-P complexes, rather than N alone, are required for proper and selective encapsidation of viral RNA (8,20). After infection, replication is therefore not possible until the so-called primary transcription and translation provide enough N protein.In spite of the fact that N is the most abundant viral protein in infected cells at later stages, transcription is the predominant RNA synthesis mode throughout infection, arguing against a simple and popular model in which the amount of available N protein or N-P complexes would determine the level of replication versus transcription. This is supported by reverse genetics experiments with RV (unpublished), vesicular stomatitis virus (VSV) (34), and respiratory syncytial virus (RSV) (9). The ratio of replication and transcription was found to be fixed and could not be altered by providing variable levels of N protein. Even with limiting amounts of N protein, only the overall RNA synthesis was reduced, suggesting that other trans-acting factors are responsible for balancing replication and transcription. Indeed, the RSV M2-2 protein, which is unique to members of the Pneumovirus genus and is associated with RNPs, was shown to be a trans-acting factor able to shift the balance of RNA synthesis from transcription toward RNA replication (2).Reverse genetics experiments with RV minigenomes, Mgene deletion mutants, and recombinant full-length virus with modified M expression more recently revealed an important function of the M protein in the regulation of rhabdovirus RNA synthesis. In the absence of M, replication of RV was downregulated, while the transcription efficiency was enhanced, resul...