All hepatitis B viruses replicate by protein-primed reverse transcription, employing a specialized reverse transcriptase, P protein, that carries a unique terminal protein (TP) domain. To initiate reverse transcription, P protein must bind to a stem-loop, , on the pregenomic RNA template. TP then provides a Y residue for covalent attachment of the first nucleotide of an -templated DNA oligonucleotide (priming reaction) that serves to initiate full-length minus-strand DNA synthesis. binding requires the chaperone-dependent conversion of inactive P protein into an activated, metastable form designated P*. However, how P* differs structurally from P protein is not known. Here we used an in vitro reconstitution system for active duck hepatitis B virus P combined with limited proteolysis, site-specific antibodies, and defined P mutants to structurally compare nonactivated versus chaperone-activated versus primed P protein. The data show that Hsp70 action, under conditions identical to those required for functional activation, transiently exposes the C proximal TP region which is, probably directly, involved in RNA binding. Notably, after priming and RNA removal, a very similar new conformation appears stable without further chaperone activity; hence, the activation of P protein is triggered by energy-consuming chaperone action but may be completed by template RNA binding.Hepatitis B viruses (HBVs), or hepadnaviruses, are small enveloped DNA-containing viruses (12, 34) that replicate through protein-primed reverse transcription of a pregenomic RNA (pgRNA) intermediate (37). This unusual mechanism (4) is reflected in the structural organization of their reverse transcriptase (RT), P protein, which in addition to the conserved RT and RNase H (RH) domains (45) contains a unique terminal protein (TP) domain of about 200 amino acids not found in any other RT (Fig. 1A). TP is connected to the RT domain by a functionally dispensable spacer. Binding of P protein to a 5Ј-proximal stem-loop, ε (Dε for duck HBV [DHBV]), on the pgRNA triggers both encapsidation of the pgRNA and initiation of reverse transcription. Using the hydroxyl group of a specific Y residue in TP (Y63 in HBV [24], Y96 in DHBV [44,47]) rather than a tRNA 3Ј end as starting point, P protein generates a 3-to 4-nucleotide, ε-templated DNA oligonucleotide ("priming"; Fig. 1B). After this initiation phase, ε is replaced as a template by the 3Ј-proximal DR1* element on pgRNA and, primed by the TP-linked DNA oligonucleotide, minus-strand DNA is elongated from there. The end product of reverse transcription is a partially doublestranded, relaxed circular DNA in which the minus strand is still covalently linked to TP. This mechanism appears to hold for all hepadnaviruses, but most current knowledge is derived from DHBV (32), whose P protein, in contrast to that of HBV (17), is capable of performing the priming reaction in appropriate cell-free systems (2,6,16,19,41).Initial studies with P protein in vitro-translated in rabbit reticulocyte lysate (RL) revealed a strict...