Telomerase is a unique ribonucleoprotein complex that catalyzes the addition of telomeric DNA repeats onto the 3′ ends of linear chromosomes. All vertebrate telomerase RNAs contain a catalytically essential core domain that includes the template and a pseudoknot with extended helical subdomains. Within these helical regions is an asymmetric 5-nt internal bulge loop (J2a/b) flanked by helices (P2a and P2b) that is highly conserved in its location but not sequence. NMR structure determination reveals that J2a/b forms a defined S-shape and creates an ∼90°bend with a surprisingly low twist (∼10°) between the flanking helices. A search of RNA structures revealed only one other example of a 5-nt bulge, from hepatitis C virus internal ribosome entry site, with a different sequence but the same structure. J2a/b is intrinsically flexible but the interhelical motions across the loop are remarkably restricted. Nucleotide substitutions in J2a/b that affect the bend angle, direction, and interhelical dynamics are correlated with telomerase activity. Based on the structures of P2ab (J2a/b and flanking helices), the conserved region of the pseudoknot (P2b/P3, previously determined) and the remaining helical segment (P2a.1-J2a.1 refined using residual dipolar couplings and the modeling program MC-Sym) we have calculated an NMR-based model of the fulllength pseudoknot. The model and dynamics analysis show that J2a/b serves as a dominant structural and dynamical element in defining the overall topology of the core domain, and suggest that interhelical motions in P2ab facilitate nucleotide addition along the template and template translocation.T elomeres are DNA-protein complexes that cap the ends of linear chromosomes. During each round of cell replication, telomeres shorten due to incomplete replication of telomere DNA repeats, and shortening of telomeres below a critical length leads to telomere fusions and cell senescence (1). Telomerase, a unique reverse transcriptase first discovered in Tetrahymena about two decades ago, is essential for maintaining the telomere length and the stability of chromosomes in most eukaryote species (2-4). A high level of telomerase activity is associated with cell proliferation in most (∼90%) cancers (5). The telomerase holoenzyme is a large complex comprising a unique reverse transcriptase protein (telomerase reverse transcriptase, TERT) which contains the active site for nucleotide addition, an essential RNA component [telomerase RNA (TR)] which contains the template for telomere DNA synthesis (6), and several speciesspecific proteins required for function in vivo such as assembly and localization (7).In addition to providing the template, the TR contains subdomains (8, 9) required for catalytic activity, localization, TR 3′ end processing, and accumulation (10). Telomerase deficiency due to mutations in TR has been linked to several inherited human diseases, such as dyskeratosis congenita, aplastic anemia, myelodysplasia, and idiopathic pulmonary fibrosis (11). The minimal components of verteb...