Genomic RNA encapsidation in lentiviruses is a highly selective and regulated process. The unspliced RNA molecules are selected for encapsidation from a pool of many different viral and cellular RNA species. Moreover, two molecules are encapsidated per viral particle, where they are found associated as a dimer. In this study, we demonstrate that a 10-nucleotide palindromic sequence (pal) located at the 3 end of the encapsidation signal is critical for human immunodeficiency virus type 2 (HIV-2) replication and affects genomic RNA encapsidation. We used short-term and long-term culture of pal-mutated viruses in permissive C8166 cells and their phenotypic reversion to show the existence of a structurally extended SL1 during HIV-2 replication, formed by the interaction of the 3 end of the pal within with a motif located downstream of SL1. The stem extending HIV-2 SL1 is structurally similar to stem B described for HIV-1 SL1. Despite the high degree of phylogenetic conservation, these results show that mutant viruses are viable when the autocomplementary nature of the pal sequence is disrupted, but not without a stable stem B. Our observations show that formation of the extended SL1 is necessary during viral replication and positively affects HIV-2 genomic RNA encapsidation. Sequestration of part of the packaging signal into SL1 may be a means of regulating its presentation during the replication cycle.The 5Ј-untranslated regions of retroviral RNAs contain several structured motifs that are involved in various steps in viral replication, including transcriptional transactivation, splicing, encapsidation, dimerization, and initiation of reverse transcription (for a review, see reference 3). Encapsidation of the genomic RNA in lentiviruses is a very specific process. Two molecules of unspliced RNA are selected for encapsidation over a vast excess of different spliced viral RNA species and cellular RNA. The historical model of retroviral RNA encapsidation has been that viral structural proteins like Gag recognize and bind specific RNA motifs located downstream of the major splice donor site, and thus only present in the unspliced viral RNA, and transfer a pair of these molecules into one newly forming viral particle (for a review, see references 11 and 20).However, most recent studies suggest that the encapsidation signal is not limited to a single RNA element.