Transformation of both prokaryotes and eukaryotes with singlestranded oligonucleotides can transfer sequence information from the oligonucleotide to the chromosome. We have studied this process using oligonucleotides that correct a ؊1 frameshift mutation in the LYS2 gene of Saccharomyces cerevisiae. We demonstrate that transformation by oligonucleotides occurs preferentially on the lagging strand of replication and is strongly inhibited by the mismatch-repair system. These results are consistent with a mechanism in which oligonucleotides anneal to single-stranded regions of DNA at a replication fork and serve as primers for DNA synthesis. Because the mispairs the primers create are efficiently removed by the mismatch-repair system, single-stranded oligonucleotides can be used to probe mismatch-repair function in a chromosomal context. Removal of mispairs created by annealing of the single-stranded oligonucleotides to the chromosomal DNA is as expected, with 7-nt loops being recognized solely by MutS and 1-nt loops being recognized by both MutS␣ and MutS. We also find evidence for Mlh1-independent repair of 7-nt, but not 1-nt, loops. Unexpectedly, we find a strand asymmetry of mismatchrepair function; transformation is blocked more efficiently by MutS␣ on the lagging strand of replication, whereas MutS does not show a significant strand bias. These results suggest an inherent strand-related difference in how the yeast MutS␣ and MutS complexes access and/or repair mismatches that arise in the context of DNA replication.T he transformation of yeast by single-stranded oligonucleotides (ssOligos) was first demonstrated 20 years ago by Sherman and colleagues (1). By using the CYC1 gene as a target of ssOligos of 50 nt, it was found that mismatches, in general, reduced ssOligo transformation (ssOT) efficiency, that 3Ј deoxyoligonucleotides transformed somewhat less well than those with a 3Ј hydroxyl and that ssOT was independent of tested recombination functions (2, 3). A strong strand bias also was observed, with ssOligos having the sequence of the coding strand of CYC1 (defined here as COD oligonucleotides) transforming 50-100 times better than oligonucleotides with the complementary sequence (noncoding, or NC, oligonucleotides). It was suggested that the differences between COD and NC ssOT frequencies were not related to transcriptional differences but could be due to preferential incorporation of oligonucleotides into either the leading or lagging strand of replication (3). More recently, the Kmiec (4) lab has studied the transformation of cyc1 point mutants using 70-nt ssOligos with three phosphorothioate bonds at the 3Ј and 5Ј termini. In this case, there appeared to be an opposite strand bias, with NC ssOligos transforming better than COD ssOligos. Furthermore, it was suggested that this transformation was enhanced by repair processes such as mismatch repair (MMR), with transformation apparently decreasing in MMR-defective cells (4).In addition to the yeast studies, it has also been shown that ssOligos can t...