Certain core and membrane proteins of vaccinia virus undergo proteolytic cleavage at consensus AG/X sites. The processing of core proteins is coupled to morphogenesis and is inhibited by the drug rifampin, whereas processing of the A17 membrane protein occurs at an earlier stage of assembly and is unaffected by the drug. A temperature-sensitive mutant with a lesion in the I7L gene exhibits blocks in morphogenesis and in cleavage of core proteins. We found that the mutant also failed to cleave the A17 membrane protein. To further investigate the role of the putative I7 protease, we constructed a conditional lethal mutant in which the I7L gene was regulated by the Escherichia coli lac repressor. In the absence of an inducer, the synthesis of I7 was repressed, proteolytic processing of the A17 membrane protein and the L4 core protein was inhibited, and virus morphogenesis was blocked. Under these conditions, expression of the wild-type I7 protein in trans restored protein processing. In contrast, rescue did not occur when the putative protease active site residue histidine 241 or cysteine 328 of I7 was converted to alanine. The mutation of an authentic AG/A and an alternative AG/S motif of L4 prevented substrate cleavage. Similarly, when AG/X sites of A17 were mutated, I7-induced cleavages at the N and C termini failed to occur. In conclusion, we provide evidence that I7 is a viral protease that is required for AG/X-specific cleavages of viral membrane and core proteins, which occur at early and late stages of virus assembly, respectively.Vaccinia virus (VV), the best-studied member of the Poxviridae, is a complex enveloped DNA virus that replicates in the cytoplasm of infected cells (15). Viral DNA replication, transcription, the accumulation of viral structural proteins, and the assembly of virions occur in discrete juxtanuclear viral factories. Morphogenesis begins with the formation of crescentshaped membranes that engulf dense viroplasm to form spherical immature virions (IV) (6). Maturation of the IV into infectious intracellular mature virions (IMV) involves a poorly understood process in which at least three core proteins, namely P4a, P4b, and P25, encoded by the A10L, A3L, and L4R open reading frames (ORFs), respectively, undergo proteolytic processing (12,16,26) at a consensus AG/X motif (21-23, 28). Initial evidence that processing is coupled to virus maturation was obtained by using the drug rifampin, which reversibly blocks an early step in virus assembly and the cleavage of core proteins (12, 17). Subsequently, numerous temperature-sensitive (ts) mutants were shown to have defects in virus assembly and the processing of core proteins under nonpermissive conditions. One IMV membrane protein, encoded by the A17L ORF, also undergoes proteolytic cleavages at AG/X sites (2,18,21,28). The processing of membrane and core proteins appears to be separable, as two studies described no effect of rifampin on the cleavage of A17 (2, 18) but a third study concluded that rifampin blocked cleavage of this protein (28...