Packaging specific exogenous active proteins and DNAs together within a single viral-nanocontainer is challenging. The bacteriophage T4 capsid (100 × 70 nm) is well suited for this purpose, because it can hold a single long DNA or multiple short pieces of DNA up to 170 kb packed together with more than 1,000 protein molecules. Any linear DNA can be packaged in vitro into purified procapsids. The capsid-targeting sequence (CTS) directs virtually any protein into the procapsid. Procapsids are assembled with specific CTS-directed exogenous proteins that are encapsidated before the DNA. The capsid also can display on its surface high-affinity eukaryotic cell-binding peptides or proteins that are in fusion with small outer capsid and head outer capsid surface-decoration proteins that can be added in vivo or in vitro. In this study, we demonstrate that the site-specific recombinase cyclic recombination (Cre) targeted into the procapsid is enzymatically active within the procapsid and recircularizes linear plasmid DNA containing two terminal loxP recognition sites when packaged in vitro. mCherry expression driven by a cytomegalovirus promoter in the capsid containing Cre-circularized DNA is enhanced over linear DNA, as shown in recipient eukaryotic cells. The efficient and specific packaging into capsids and the unpackaging of both DNA and protein with release of the enzymatically altered protein-DNA complexes from the nanoparticles into cells have potential in numerous downstream drug and gene therapeutic applications.terminase | DNA packaging | capsid decoration proteins | Soc | Hoc V iral-based nanoparticles (NPs) that deliver cargo to specific targets continue to be of widespread interest for drug-and gene-delivery applications in human diseases and other areas of technology, such as diagnostic and cellular imaging (1-4). NPs derived from bacteriophage capsids are among the most attractive for these purposes (5-7). As NPs for medical applications, bacteriophage capsids have the advantages of (i) biocompatibility and demonstrated stability in the circulatory system and widespread delivery to tissues; (ii) absence of eukaryotic cell toxicity and of a preexisting immune response; (iii) ease and flexibility of molecular manipulation of the capsids and the encapsidated cargo; and (iv) easy accessibility of large amounts of material from fully characterized and nonpathogenic bacteria. Bacteriophage capsids and bacteriophages themselves vary tremendously in size and shape as well as complexity. The T4-like phages, which are among the largest and most complex of such bacteriophages, are particularly attractive because they are exceedingly well studied at the molecular and structural level. Thus, the large bacteriophage T4 capsid can serve in vaccine development, as displayed by surface decoration of full-length and active proteins (8-10), or for affinity studies using bipartite randomized peptide display libraries (Fig. 1) (11).The phage T4 capsid has an additional unusual feature among bacteriophages: It is able to pack m...