Foamy virus (FV) replication, while related to that of orthoretroviruses, differs at a number of steps. Several of these differences involve the reverse transcriptase (RT). There appear to be fewer RTs present in FV than in orthoretroviruses; we previously proposed that the polymerase of FV RT was more active than orthoretroviral RTs to compensate for the numerical difference. Here we present further characterization of the RT of FV. The polymerase activity of FV RT was greater than that of human immunodeficiency virus type 1 RT in a variety of assays. We also examined the RNase H activity of FV RT, and we propose that FV RT has a basic loop in the RNase H domain. Although the sequence of the basic loop of FV RT is different from the basic loop of either Moloney leukemia virus RNase H or Escherichia coli RNase H, the FV RT basic loop appears to have a similar function.Foamy viruses (FVs) are retroviruses (subfamily Spumaretrovirinae) but are in some ways distinct from typical retroviruses. The organization of the gag, pol, and env genes in the FV genome is the same as in orthoretroviruses and, like orthoretroviruses, FVs convert their single-stranded RNA genomes into integrated double-stranded DNA proviruses flanked by two long terminal repeats (LTRs), using the enzymes reverse transcriptase (RT) and integrase (IN). However, FVs have distinct features that set them apart from orthoretroviruses. Several of these differences involve either reverse transcription or the RT enzyme itself. In orthoretroviruses, such as human immunodeficiency virus type 1 (HIV-1), RT converts the single-stranded RNA genome into double-stranded DNA after the virion enters the target cell (8). In contrast, a significant portion of FV particles contain double-stranded DNA (39,41). Inhibitor studies make it clear that it is the virions with DNA genomes that infect the target cells, indicating that FV RT must be active in the cells producing the viral particles (27,41).Orthoretroviruses use a single full-length RNA transcript as the mRNA for both the gag and pol genes. Translation of the full-length RNA produces both the Gag and Gag-Pol polyproteins (8). Approximately 20 Gag proteins are produced for every Gag-Pol fusion protein (8). Gag self-assembles to form viral particles; during virus assembly, the Gag portion of the Gag-Pol fusion protein interacts with the Gag proteins. This is how the Pol proteins are incorporated into virions; the resulting virions have approximately 50 to 100 Gag-Pol polyproteins per particle (14,18,28,38). However, in an FV-infected cell, the Pol polyprotein is made independently from Gag; Pol is translated from a spliced message (13,19,39). The FV Pol polyprotein is proteolytically processed; however, it undergoes only limited processing. There is a single protease cleavage between RT and IN which releases IN and a protease-RT fusion protein (30). Protease is not cleaved from RT. The mechanism for packaging FV Pol protein into the virion appears to involve interactions of FV Pol with specific sequences in the RN...