The mammalian interferon (IFN) signaling pathway is a primary component of the innate antiviral response. As such, viral pathogens have devised multiple mechanisms to antagonize this pathway and thus facilitate infection. Dengue virus (DENV) encodes several proteins (NS2a, NS4a, and NS4b) that have been shown individually to inhibit the IFN response. In addition, DENV infection results in reduced levels of expression of STAT2, which is required for IFN signaling (M. Jones, A. Davidson, L. Hibbert, P. Gruenwald, J. Schlaak, S. Ball, G. R. Foster, and M. Jacobs, J. Virol. 79:5414-5420, 2005). Translation of the DENV genome results in a single polypeptide, which is processed by viral and host proteases into at least 10 separate proteins. To date, no single DENV protein has been implicated in the targeting of STAT2 for decreased levels of expression. We demonstrate here that the polymerase of the virus, NS5, binds to STAT2 and is necessary and sufficient for its reduced level of expression. The decrease in protein level observed requires ubiquitination and proteasome activity, strongly suggesting an active degradation process. Furthermore, we show that the degradation of but not binding to STAT2 is dependent on the expression of the polymerase in the context of a polyprotein that undergoes proteolytic processing for NS5 maturation. Thus, the mature form of NS5, when not expressed as a precursor, was able to bind to STAT2 but was unable to target it for degradation, establishing a unique role for viral polyprotein processing in providing an additional function to a viral polypeptide. Therefore, we have identified both a novel mechanism by which DENV evades the innate immune response and a potential target for antiviral therapeutics.Dengue virus (DENV) is the causative agent of dengue fever, dengue hemorrhagic fever, and dengue shock syndrome (2). The virus and its arthropod vector, Aedes aegypti (21), are endemic to over 100 countries around the world including the United States. It is responsible for an estimated 50 million to 100 million infections annually, with over 24,000 deaths resulting, predominantly in children under 14 years of age (25). The virus exists in four serotypes (DEN1 to DEN4) and is grouped into the flavivirus genus along with a number of additional human pathogens including West Nile virus (WNV), Japanese encephalitis virus (JEV), and tick-borne encephalitis virus (TBEV). These viruses have a positive-strand, nonsegmented genome of ϳ11 kb (5, 55), the organization of which is highly conserved, encoding, in order, three structural proteins (C, M, and E), followed by seven nonstructural proteins (NS1, NS2a, NS2b, NS3, NS4a, NS4b, and NS5). The genome is translated as a single endoplasmic reticulum (ER)-bound polyprotein, which is co-and posttranslationally processed by both viral (NS2b and NS3) and cellular proteases (8,44).A critical component of the human antiviral response is the type 1 interferon (IFN) pathway, which acts to delay virus replication and to stimulate the activation of antiviral ...