In vitro selection, or directed molecular evolution, allows the isolation and amplification of rare sequences that satisfy a functional-selection criterion. This technique can be used to isolate novel ribozymes (RNA enzymes) from large pools of random sequences. We used in vitro evolution to select a ribozyme that catalyzes a novel template-directed RNA ligation that requires surprisingly few nucleotides for catalytic activity. With the exception of two nucleotides, most of the ribozyme contributes to a template, suggesting that it is a general prebiotic ligase. More surprisingly, the catalytic core built from randomized sequences actually contains a 7-nt manganese-dependent self-cleavage motif originally discovered in the Tetrahymena group I intron. Further experiments revealed that we have selected a dual-catalytic RNA from random sequences: the RNA promotes both cleavage at one site and ligation at another site, suggesting two conformations surrounding at least one divalent metal ion-binding site. Together, these results imply that similar catalytic RNA motifs can arise under fairly simple conditions and that multiple catalytic structures, including bifunctional ligases, can evolve from very small preexisting parts. By breaking apart and joining different RNA strands, such ribozymes could have led to the production of longer and more complex RNA polymers in prebiotic evolution.The in vitro selection of functional RNA molecules from random sequence pools has successfully isolated far more classes of ribozymes than have yet been found in nature. The classic experiment (1) revealed an abundance of RNA ligase ribozymes in a random sampling of 10 15 unique sequences. The first experiments to probe in vitro evolution of ribozymes searched for improved or altered versions of the naturally occurring Tetrahymena group I ribozyme. For example, Green et al. (2) used in vitro evolution to restore and to improve activity of a pool of molecules based on the Tetrahymena group I intron, whereas Joyce and colleagues subsequently isolated variants of the group I ribozyme that performed subtly different tasks, such as cleavage of a DNA substrate (3) or acquisition of a novel dependency on a specific divalent metal cation (4). The ability of directed evolution and ribozyme engineering to evoke secondary activities of group I variants such as cleavage of aminoacyl ester or amide bonds (5-7; reviewed in ref. 8) suggests that RNA has an intrinsic capacity to adapt to novel contexts or substrates, although in these cases the acquisition of new catalytic activity was aided by careful design of the substrate to mimic the natural phosphodiester bond.In this paper we report the in vitro selection and evolution of a very small ribozyme that catalyzes the ligation of two substrate RNAs but also possesses the unexpected ability to undergo a separate self-cleavage reaction. Substitution of a divalent metal ion in the absence of further sequence evolution triggers the switch from selected ligase to unselected selfcleaving RNA. The fa...