Covalently closed circular DNA (cccDNA), the nuclear form of hepatitis B virus (HBV), is synthesized by repair of the relaxed circular (RC) DNA genome. Initially, cccDNA is derived from RC DNA from the infecting virion, but additional copies of cccDNA are derived from newly synthesized RC DNA molecules in a process termed intracellular amplification. It has been shown that the large viral envelope protein limits the intracellular amplification of cccDNA for duck hepatitis B virus. The role of the envelope proteins in regulating the amplification of cccDNA in HBV is not well characterized. The present report demonstrates regulation of synthesis of cccDNA by the envelope proteins of HBV. Ablation of expression of the envelope proteins led to an increase (>6-fold) in the level of cccDNA. Subsequent restoration of envelope protein expression led to a decrease (>50%) in the level of cccDNA, which inversely correlated with the level of the envelope proteins. We found that the expression of L protein alone or in combination with M and/or S proteins led to a decrease in cccDNA levels, indicating that L contributes to the regulation of cccDNA. Coexpression of L and M led to greater regulation than either L alone or L and S. Coexpression of all three envelope proteins was also found to limit completion of plus-strand DNA synthesis, and the degree of this effect correlated with the level of the proteins and virion secretion.Hepatitis B virus (HBV) is a member of the family Hepadnaviridae. Features of this family include a small, doublestranded DNA genome and enveloped virions (14). The envelope of HBV consists of a host cell-derived phospholipid bilayer that contains the virally encoded large (L), middle (M), and small (S) envelope proteins (21). This envelope surrounds the nucleocapsid, which is composed of the viral core (C) protein and contains the DNA genome (11). The doublestranded DNA genome within the virion is in either a relaxed circular (RC) or a duplex linear (DL) conformation, of which RC is the predominant form (12,44,48). RC DNA contains a full-length minus strand, which has the viral polymerase (P) protein covalently attached to its 5Ј end (17). The plus strand has a specific 5Ј end but is extended to various lengths, which can leave a single-stranded (SS) region (12,45,48). The reason the plus strand is not completely synthesized prior to the release of the virion is not understood. It is not known if the process of the nucleocapsid acquiring an envelope is related to the incomplete state of the plus strand found in virions.The RC DNA molecule from the virion is converted into a covalently closed circular DNA (cccDNA) molecule in the nucleus of a cell (38,40,51). The mechanism of conversion of RC DNA into cccDNA is not well understood. Minimally, this involves removal of the 5Ј-terminal moieties from the minus strand (P protein) and the plus strand (RNA primer), completion of synthesis of the plus strand, and ligation of 5Ј and 3Ј ends of each of the strands (14). cccDNA is the template for transcription of...