Avian reovirus and Nelson Bay reovirus are two unusual nonenveloped viruses that induce extensive cell-cell fusion via expression of a small nonstructural protein, termed p10. We investigated the importance of the transmembrane domain, a conserved membrane-proximal dicysteine motif, and an endodomain basic region in the membrane fusion activity of p10. We now show that the p10 dicysteine motif is palmitoylated and that loss of palmitoylation correlates with a loss of fusion activity. Mutational and functional analyses also revealed that a triglycine motif within the transmembrane domain and the membrane-proximal basic region were essential for p10-mediated membrane fusion. Mutations in any of these three motifs did not influence events upstream of syncytium formation, such as p10 membrane association, protein topology, or surface expression, suggesting that these motifs are more intimately associated with the membrane fusion reaction. These results suggest that the rudimentary p10 fusion protein has evolved a mechanism of inducing membrane merger that is highly dependent on the specific interaction of several different motifs with donor membranes. In addition, cross-linking, coimmunoprecipitation, and complementation assays provided no evidence for p10 homo-or heteromultimer formation, suggesting that p10 may be the first example of a membrane fusion protein that does not form stable, higher-order multimers.Protein-mediated membrane fusion is an essential step in numerous cellular processes and in entry of enveloped viruses into cells (20,22,53). The viral fusion proteins involved in enveloped virus entry and virus-induced syncytium formation have been extensively characterized. Membrane fusion is dependent on extensive conformational changes in these complex, multimeric viral proteins that serve to regulate and drive the fusion reaction (46, 52). Much effort has been focused on defining the roles of specific fusion protein motifs in the membrane fusion reaction. Numerous studies have revealed the essential role that viral fusion peptides play in the membrane fusion reaction, serving to destabilize lateral lipid interactions and alter membrane curvature, leading to fusion pore formation (15,19,31,39,48). Studies on the influence of the transmembrane (TM) domains or endodomains of viral fusion proteins on membrane fusion, however, have yielded variable or contradictory results, and specific roles for these motifs remain unclear (1,9,34,35,38).Avian reovirus (ARV) and Nelson Bay reovirus (NBV) are two of only a limited number of nonenveloped viruses that induce cell-cell fusion and multinucleated-syncytium formation (12). Both viruses encode homologous 10-kDa proteins (p10) that, when expressed by themselves in transfected cells, induce extensive cell-cell fusion (45). These fusion-associated small transmembrane (FAST) proteins are significantly smaller than the enveloped virus fusion proteins, containing only 95 to 98 amino acids. The reovirus FAST proteins are also the only examples of nonstructural viral protei...