The pregenomic RNA (pgRNA) of hepatitis B virus (HBV) serves as the messenger for both core and P proteins, with the downstream P gene translated by ribosomal leaky scanning. HBV replication begins with packaging of the pgRNA and P protein into core protein particles, followed by conversion of RNA into DNA. Genotype G has a low replication capacity due to a low pgRNA level. It has a 36-nucleotide (nt) insertion in the 5 end of the core gene, adding 12 residues to the core protein. The insertion is needed to maintain efficient core protein expression and genome replication but causes inefficient virion secretion yet high maturity of virion DNA. In the present study, we confirmed that the 36-nt insertion had similar effects on core protein expression and virion secretion when it was introduced into genotype A and D clones but no impact on virion genome maturity. Surprisingly, the insertion impaired genome replication in both genotypes. Transcomplementation assays suggest that increased efficiency of core protein translation diminishes ribosomal scanning toward the downstream P gene. Indeed, mutating the core gene Kozak sequence restored core protein to lower levels but increased replication of the insertion mutant. Similar mutations impaired replication in genotype G. On the other hand, replacement of the core promoter sequence of genotype G with genotype A sequence increased pgRNA transcription and genome replication, implicating this region in the low replication capacity of genotype G. Why the 36-nt insertion is present in genotype G but absent in other genotypes is discussed.Hepatitis B virus (HBV) is an enveloped DNA virus and the prototype of the Hepadnaviridae family. The 3.2-kb genome contains four genes: preS1/preS2/S (envelope), precore/core, polymerase (P), and X, leading to the expression of seven viral proteins: large (L), middle (M), and small (S) envelope; core and related hepatitis B e antigen (HBeAg); P; and HBx. These proteins are translated from five mRNAs: 3.5-kb precore (HBeAg), 3.5-kb pregenomic (core and P), 2.4-kb subgenomic (L), 2.1-kb subgenomic (M and S), and 0.7-kb subgenomic (HBx) (34). These mRNAs are transcribed from the covalently closed circular DNA (cccDNA) template in the nucleus and exported to the cytoplasm for protein translation. The translation initiation sites of the core and P genes are located about 80 and 500 nucleotides (nt) from the 5Ј end of the pregenomic RNA (pgRNA), respectively, leading to much more efficient translation of core protein than P protein. P protein translation from the pgRNA is believed to involve ribosomal leaky scanning of several upstream AUG codons as well as translational termination-reinitiation (4,7,12,13,23). DNA replication initiates with core protein self-assembly into core particles, with concomitant packaging of the pgRNA and the P protein.Selective packaging of pgRNA is mediated by a stem-loop structure or the ε signal, present at its 5Ј end (14). Inside the core particle the P protein synthesizes minus-strand DNA from the pgRNA template...