The ElA gene of adenovirus type 5 encodes a 289-amino-acid (289R) protein that transactivates early adenovirus promoters. We showed that the 289R protein of the EIA missense mutant gene hr5 is novel in that it inhibits the wild-type (wt) ElA protein from stimulating transcription from each of the early viral promoters E2, E3, and E4. Since both the hr5 and wt genes produced similar levels of ElA proteins, the ability of hr5 ElA to block transactivation was attributed to the replacement of serine by asparagine as position 185. We confirmed that this single amino acid substitution was responsible for blocking transactivation by showing equal inhibition with an hr5-wt hybrid ElA gene containing this missense mutation as the only alteration. The smaller 243R ElA protein of hr5 was not necessary for inhibition. Transcriptional activity from each early promoter was inhibited by at least 50% when the hr5 and wt ElA genes were present in equimolar amounts; complete inhibition occurred with a fivefold molar excess of the hr5 gene. Two other ElA missense mutant genes (hr3 and hr4) with amino acid substitutions in close proximity to that of hr5 failed to block wt ElA-induced transcription when similarly tested. Also, the hr5 ElA gene failed to impede the pseudorabies immediate early gene from transactivating the adenovirus E3 promoter, demonstrating that hr5 ElA inhibits wt ElA activation at the transcriptional, rather than the posttranscriptional, level. Although several possibilities were considered to account for this inhibition, the most likely is that the nonfunctional hr5 ElA protein competes with the wt 289R protein for a cellular transcription factor required for transactivation.