The 5′ cap structure (m 7 GpppX-) is an essential feature of eukaryotic mRNA required for mRNA stability and efficient translation. Influenza virus furnishes its mRNA with this structure by a capsnatching mechanism, in which the viral polymerase cleaves host mRNA endonucleolytically 10-13 nucleotides from the 5′ end and utilizes the capped fragment as a primer to synthesize viral transcripts. Here we report a unique cap-snatching mechanism by which the yeast double-stranded RNA totivirus L-A furnishes its transcript with a cap structure derived from mRNA. Unlike influenza virus, L-A transfers only m 7 Gp from the cap donor to the 5′ end of the viral transcript, thus preserving the 5′ α-and β-phosphates of the transcript in the triphosphate linkage of the final product. This in vitro capping reaction requires His154 of the coat protein Gag, a residue essential for decapping of host mRNA and known to form m 7 Gp-His adduct. Furthermore, the synthesis of capped viral transcripts in vivo and their expression were greatly compromised by the Arg154 mutation, indicating the involvement of Gag in the cap-snatching reaction. The overall reaction and the structure around the catalytic site in Gag resemble those of guanylyltransferase, a key enzyme of cellular mRNA capping, suggesting convergent evolution. Given that Pol of L-A is confined inside the virion and unable to access host mRNA in the cytoplasm, the structural protein Gag rather than Pol catalyzing this unique cap-snatching reaction exemplifies the versatility as well as the adaptability of eukaryotic RNA viruses.transcription | Saccharomyces cerevisiae | killer toxin E ukaryotic mRNA is capped at the 5′ end by a 7-methyl GMP moiety via an inverted 5′-5′ triphosphate linkage (m 7 GpppX) (1, 2). The cap structure is required for mRNA stability and efficient translation. Capping of the RNA 5′ end is accomplished in cells and for most viruses in three sequential catalytic reactions (3, 4): removal of the 5′ γ-phosphate by RNA triphosphatase, addition of GMP from GTP by guanylyltransferase, and methylation of the added GMP by methyltransferase. Influenza virus, how-