Synthesis of the relaxed-circular (RC) DNA genome of hepadnaviruses requires two template switches during plus-strand DNA synthesis: primer translocation and circularization. Although primer translocation and circularization use different donor and acceptor sequences, and are distinct temporally, they share the common theme of switching from one end of the minusstrand template to the other end. Studies of duck hepatitis B virus have indicated that, in addition to the donor and acceptor sequences, three other cis-acting sequences, named 3E, M, and 5E, are required for the synthesis of RC DNA by contributing to primer translocation and circularization. The mechanism by which 3E, M, and 5E act was not known. We present evidence that these sequences function by base pairing with each other within the minus-strand template. 3E base-pairs with one portion of M (M3) and 5E base-pairs with an adjacent portion of M (M5). We found that disrupting base pairing between 3E and M3 and between 5E and M5 inhibited primer translocation and circularization. More importantly, restoring base pairing with mutant sequences restored the production of RC DNA. These results are consistent with the model that, within duck hepatitis B virus capsids, the ends of the minus-strand template are juxtaposed via base pairing to facilitate the two template switches during plus-strand DNA synthesis.H epadnaviruses are a family of DNA viruses that replicate via reverse transcription of an RNA intermediate (1). Like other reverse transcribing elements, hepadnaviruses use template switches or template exchanges for the synthesis of their genomes. Template switching is the process in which the strand of DNA being synthesized switches from its current template to a new template. For retroviruses, two template switches are required for the synthesis of retroviral DNA: the first and second strong stop template switches (2). These are referred to as replicative template switches. Retroviruses also perform a second type of template switching, called recombinogenic, between the two RNA templates or within a single RNA template during the synthesis of the minus-strand DNA (3, 4). However, these recombinogenic template switches, unlike the replicative template switches, are not obligatory steps in each cycle of reverse transcription. Similar to the replicative template switches in retroviruses, three template switches are needed for the synthesis of the relaxed-circular (RC) genome of hepadnaviruses: one during the synthesis of minus-strand DNA and two for plus-strand RC DNA synthesis. In general, replicative template switches involve translocation of the nascent DNA strand from one end to the other end of the template. Sequence identity at the donor and acceptor sites ensures that the nascent DNA strand elongates from the correct position on the new template.Reverse transcription of hepadnaviruses takes place within the cytoplasmic capsids in hepatocytes ( Fig. 1; for a review, see ref. 5). The first template switch occurs shortly after the initiation of min...