The crystal structure of flap endonuclease-1 from Pyrococcus horikoshii (phFEN-1) was determined to a resolution of 3.1 Å. The active cleft of the phFEN-1 molecule is formed with one large loop and four small loops. We examined the function of the conserved residues and positively charged clusters on these loops by kinetic analysis with 45 different mutants. A hyperthermophilic archaeon Pyrococcus horikoshii was isolated from a hydrothermal vent in the Okinawa trough in the Pacific Ocean (1). It grows optimally at around 100°C. The entire genome sequence of this archaeon has been determined by the National Institute of Technology and Evaluation in Japan (2). Our current understanding of the DNA replication mechanism in archaea, the third domain of life, is still rudimentary. However, several genes encoding eukaryotic-like DNA replication proteins are present in archaea genomes (2-5). This observation has led to the proposal that the archaeal and eukaryotic DNA replication mechanisms share important similarities.Flap endonuclease-1 (FEN-1) 1 has important roles in DNA replication, repair, and recombination. FEN-1 has 5Ј-flap endonuclease and 5Ј-3Ј-exonuclease activities. In DNA replication, FEN-1 removes the RNA primers during the maturation of the Okazaki fragment (6 -9). For DNA repair, FEN-1 removes damaged nucleotides after apurinic/apyrimidinic endonuclease has incised the 5Ј side of the apurinic/apyrimidinic site in long patch base excision repair (10 -12). FEN-1 is also required for nonhomologous DNA end joining of double strand DNA breaks (13). The FEN-1 sequence is conserved among eukaryotes and archaea (14 -17). Two crystal structures of FEN-1 have been reported exclusively in thermophilic archaea (18,19). The molecular structures of the members of the FEN-1 family, T5 exonuclease, T4 RNase H, and the exonuclease domain of Taq polymerase, were also reported (20 -22). They have in common a large helical arch mounted upon a globular domain containing the active site. It was postulated that the flap strand of the substrate DNA threads through this arch (22). Several studies have provided evidence of a role for the arch in tracking the flap strand (23-25). However, it remains unclear whether the flap strand of the substrate DNA threads through this arch because FEN-1 could cleave the flap strand with a secondary structure even at a reduced rate and could efficiently hydrolyze the branched structure (26, 27). The FEN-1 homologue (PH1415) was identified in the P. horikoshii genome (2) and then overexpressed in Escherichia coli, and the recombinant protein was characterized in detail using 35 different substrates (17). FEN-1 possesses 5Ј-flap endonuclease and 5Ј-3Ј-exonuclease activities. The flap endonuclease cleaves the flap strand at the junction, and the activity is independent of the length of the 5Ј flap strand, cleaving both the 1-and 5-mer flap strands efficiently as well as the 19-mer flap strand (28). The secondary structure of flap strand inhibited the endonuclease activity of eukaryotic FEN-1 (25-2...