The large L envelope protein of the hepatitis B virus utilizes a new folding pathway to acquire a dual transmembrane topology in the endoplasmic reticulum (ER). The process involves cotranslational membrane integration and subsequent posttranslational translocation of its preS subdomain into the ER. Here, we demonstrate that the conformational and functional heterogeneity of L depends on the action of molecular chaperones. Using coimmunoprecipitation, we observed specific interactions between L and the cytosolic Hsc70, in conjunction with Hsp40, and between L and the ERresident BiP in mammalian cells. Complex formation between L and Hsc70 was abolished when preS translocation was artificially switched to a cotranslational mode, implicating Hsc70 to act as a preS holding and folding catalyst that controls partial preS posttranslocation. The functional role of Hsc70 in L topogenesis was confirmed through modulation of its in vivo activity by overexpressing its co-chaperones Hip and Bag-1. Overexpression of the Hsc70-stimulating molecule Hip led to increased entrapping of preS on the cytosolic ER face and hence to a decrease in preS posttranslocation, whereas the negative regulator Bag-1 had the opposite effects. Furthermore, Hip-mediated Hsc70 activation impaired virus production in hepatitis B virus-replicating hepatoma cells, likely due to the improper topological reorientation of L. Together, these results indicate that translocational regulation of protein topology by chaperones provides a means of generating structural and functional diversity. They also hint to the dynamic nature of the mammalian ER translocation machinery in handling co-and posttranslational substrates.I t is generally thought that all copies of a given membrane protein exist in a single orientation with respect to the membrane. However, certain proteins have been found to be expressed in two or more topological isoforms, with the heterogeneity apparently generated at the time of translocation at the endoplasmic reticulum (ER) membrane (1, 2). In most of these cases, the topological diversity results in protein multifunctionality, suggesting regulatory mechanisms controlling translocational variations at the ER (3-5). One example of such a protein is the large L envelope protein of the hepatitis B virus (HBV), a polytopic membrane protein existing in a mixed topology (6-8).On biogenesis, the HBV L protein, together with the structurally closely related middle M and small S envelope proteins, is expressed from a single ORF of the viral genome by differential translation initiation. As a consequence, the entire sequence of S is repeated at the C termini of M and L, which contain the additional preS2 domain or preS2 and preS1 domains, respectively (9). All three proteins are cotranslationally integrated into the ER membrane by the topogenic signals of the S region that also direct cotranslational translocation of the upstream preS2 region of M into the ER lumen (10, 11). In contrast, the preS2 plus preS1 (preS) domain of L fails to be transloc...