The replication of the genome requires the removal of RNA primers from the Okazaki fragments and their replacement by DNA. In prokaryotes, this process is completed by DNA polymerase I by means of strand displacement DNA synthesis and 5-nuclease activity. Here, we demonstrate that the strand displacement DNA synthesis is facilitated by the collective participation of Ser 769 , Phe 771 , and Arg 841 present in the fingers subdomain of DNA polymerase I. The steady and presteady state kinetic analysis of the properties of appropriate mutant enzymes suggest that: (a) Ser 769 and Phe 771 together are involved in the strand separation via the formation of a flap structure, and (b) Arg 841 interacts with the template strand to achieve the optimal strand separation and DNA synthesis. The amino acid residues Ser 769 and Phe 771 are constituents of the O1-helix, which together with O and O2 helices form a 3-helix bundle structure. We note that this 3-helix bundle motif also exists in prokaryotic RNA polymerase. Thus in both DNA and RNA polymerases, this motif may have been adopted to achieve the strand separation function.Strand displacement synthesis is an essential process in the removal and replacement of RNA primer moieties of Okazaki fragments. In prokaryotes, DNA polymerase I (pol I) 3 carries out this function by its 5Ј-nuclease and 5Ј-3Ј polymerase activities. Whereas early studies indicate a coordination of 5Ј-nuclease with the polymerase activity (1), the precise mechanism underlying this process is not clear. It appears that the participation of 5Ј-nuclease activity is not necessary for the strand displacement synthesis because the Klenow fragment of Escherichia coli DNA polymerase I has been known to catalyze strand displacement DNA synthesis (2). Thus, the strand separation activity resides in the polymerase domain of pol I.Despite the availability of numerous DNA-bound structures of polymerases (3-8), no significant information pertaining to strand displacement could be discerned because none of these crystal structures contained sufficiently long single-stranded template overhang or a downstream doublestranded DNA. One exception to this is the DNA-bound crystal structure of mammalian DNA polymerase , where the enzyme-DNA complex contains gapped DNA (9). However, this enzyme has no strand displacement activity. In the DNA-bound crystal structures of pol I family DNA polymerases, the immediate unpaired template nucleotide assumes a flipped conformation (6) such that it cannot pair with the incoming dNTP substrate. The base moiety of the template (n ϩ 1) 4 nucleotide is positioned out of the DNA helical axis by more than 90°(4, 10, 11). In the enzyme-DNA-dNTP bound ternary complex, this nucleotide rearranges its conformation and pairs with the incoming dNTP substrate (6). In the crystal structures of polymerases, because of the short length of the single-stranded template overhang, only few interactions of downstream DNA with the enzyme protein could be discerned (3, 4, 6 -8, 11-13 4 The numbering scheme for...