Previous studies revealed roles for RNA interference (RNAi) in the immediate cellular response to viral infection in plants, nematodes and flies. However, little is known about how RNAi combats viruses during persistent or latent infections. Our analysis of small RNAs cloned from Drosophila cells latently infected with Flock House Virus (FHV) failed to reveal signatures of bulk degradation of the viral genome. Instead, this ؉ strand virus specifically generated Dicer-2-dependent, 21-nucleotide siRNAs that derived in equal proportion from ؉ and ؊ strands. Curiously, luciferase reporters that are fully complementary to abundant viral siRNAs were poorly repressed. Moreover, although the viral siRNAs that were incorporated into an effector complex associated with Argonaute2, bulk FHV siRNAs in latently infected cells were not loaded into any Argonaute protein. Together, these data suggest that direct dicing of viral replication intermediates plays an important role in maintaining the latent viral state. In addition, the denial of bulk viral siRNAs from effector complexes suggests that criteria beyond the structural competency of RNA duplexes influence the assembly of functional silencing complexes.Argonaute2 ͉ Dicer-2 ͉ RNA interference ͉ virus G enetic analyses showed that core components of the RNA interference (RNAi) pathway generate viral small interfering RNAs (siRNAs) and restrict virus accumulation in flies (1-5), worms (6-8), and plants (9, 10). Such studies indicate that the cellular defense to viral infection begins when double-stranded RNA (dsRNA) viral genomes or replication intermediates are cleaved by Dicer-class RNase III enzymes into small interfering RNAs (siRNAs). The viral siRNAs are incorporated into Argonaute complexes that subsequently cleave and degrade viral coding RNAs, preventing completion of the viral lifecycle. To counteract the RNAi defense, many viruses have evolved proteins that inhibit various components of the RNAi pathway, thus permitting their successful replication and/or infection (11).In Drosophila, the RNAi and microRNA (miRNA) pathways are genetically distinct, but have substantial cross-talk (12). The canonical RNAi pathway uses Dicer-2 to process dsRNA into siRNAs, which are mostly loaded into Argonaute2 (AGO2) complex. AGO2-resident RNAs are then methylated at their 3Ј ends by the Hen1 methyltransferase (13,14). The miRNA pathway uses Dcr-1 to process premiRNA hairpins into mature miRNAs, which are mostly loaded into Argonaute1 (AGO1) complex; they remain unmethylated. Recent studies demonstrated that the sorting of diced small RNAs is influenced by the structural features of their duplex precursors. Small RNAs from perfectly double stranded duplexes are favored to enter AGO2, whereas central bulges favor entry into AGO1 (15, 16). However, these rules do not entirely explain the types of RNAs that are resident in AGO1 and AGO2 (17, 18); therefore, there are presumably additional determinants that affect small RNA loading.Because the studies to date focused on the role of R...