Hepatitis C virus (HCV) replicates through an error-prone process that may support the evolution of genetic variants resistant to the host cell antiviral response and interferon (IFN)-based therapy. We evaluated HCV-IFN interactions within a long-term culture system of Huh7 cell lines harboring different variants of an HCV type 1b subgenomic RNA replicon that differed at only two sites within the NS5A-encoding region. A replicon with a K insertion at HCV codon 2040 replicated efficiently and exhibited sequence stability in the absence of host antiviral pressure. In contrast, a replicon with an L2198S point mutation replicated poorly and triggered a cellular response characterized by IFN- production and low-level IFN-stimulated gene (ISG) expression. When maintained in long term-culture, the L2198S RNA evolved into a stable high-passage (HP) variant with six additional point mutations throughout the HCV protein-encoding region that enhanced viral replication. The HP RNA transduced Huh7 cells with more than 1,000-fold greater efficiency than its L2198S progenitor or the K2040 sequence. Replication of the HP RNA resisted suppression by IFN-␣ treatment and was associated with virus-directed reduction in host cell expression of ISG56, an antagonist of HCV RNA translation. Accordingly, the HP RNA was retained within polyribosome complexes in vivo that were refractory to IFN-induced disassembly. These results identify ISG56 as a translational control effector of the host response to HCV and provide direct evidence to link this response to viral sequence evolution, ISG regulation, and selection of the IFN-resistant viral phenotype.Hepatitis C virus (HCV) is a global public health threat that persistently infects an estimated 2% of the world population (46). Although initial HCV infection is usually subclinical, damage accumulates over time in the liver and can result in the development of cirrhosis and end-stage liver disease that often includes hepatocellular carcinoma (37). The virus is a member of the Flaviviridae and contains a 9.6-kb single-stranded positive-sense RNA genome that encodes one large polyprotein whose translation is mediated through an internal ribosome entry site (IRES) found within the viral 5Ј nontranslated region (5Ј NTR). The HCV polyprotein is postranslationally cleaved into at least 10 mature proteins through host peptidase and viral protease activities (35). The HCV nonstructural (NS) proteins are sufficient to support viral replication (4,31,32). HCV RNA replication proceeds in association with intracellular membranes through a viral replicase that includes the NS proteins. The HCV replicase is particularly dependent on the enzymatic activities of the NS5B RNA-dependent RNA polymerase (RdRp) (5) and the NS3/NS4A protease-helicase (reviewed in reference 35). Like other RNA viruses, the replicase of HCV is error prone due to the lack of proofreading function of the NS5B RdRp. Because of this error-prone replication and an overall high replication rate, HCV infection often involves genetically ...