Nonhomologous end-joining (NHEJ) pathways repair DNA doublestrand breaks (DSBs) in eukaryotes and many prokaryotes, although it is not reported to operate in the third domain of life, archaea. Here, we describe a complete NHEJ complex, consisting of DNA ligase (Lig), polymerase (Pol), phosphoesterase (PE), and Ku from a mesophillic archaeon, Methanocella paludicola (Mpa). Mpa Lig has limited DNA nick-sealing activity but is efficient in ligating nicks containing a 3′ ribonucleotide. Mpa Pol preferentially incorporates nucleoside triphosphates onto a DNA primer strand, filling DNA gaps in annealed breaks. Mpa PE sequentially removes 3′ phosphates and ribonucleotides from primer strands, leaving a ligatable terminal 3′ monoribonucleotide. These proteins, together with the DNA end-binding protein Ku, form a functional NHEJ break-repair apparatus that is highly homologous to the bacterial complex. Although the major roles of Pol and Lig in break repair have been reported, PE's function in NHEJ has remained obscure. We establish that PE is required for ribonucleolytic resection of RNA intermediates at annealed DSBs. Polymerase-catalyzed strand-displacement synthesis on DNA gaps can result in the formation of nonligatable NHEJ intermediates. The function of PE in NHEJ repair is to detect and remove inappropriately incorporated ribonucleotides or phosphates from 3′ ends of annealed DSBs to configure the termini for ligation. Thus, PE prevents the accumulation of abortive genotoxic DNA intermediates arising from strand displacement synthesis that otherwise would be refractory to repair. D NA double-strand breaks (DSBs) are one of the most lethal forms of damage encountered by cells (1). Nonhomologous end joining (NHEJ) is the primary pathway for repairing DSBs in higher eukaryotes (2). NHEJ does not require the presence of a sister chromatid, in contrast to homologous recombination, and therefore can operate in quiescent cells. The direct repair and ligation of DSBs by NHEJ is considered to be more error prone because breaks are mended without the assistance of an intact DNA template.The higher eukaryotic NHEJ complex is composed primarily of the ligase IV, X-ray repair cross-complementing protein 4 (XRCC4), and XRCC4-like factor (XLF) complex (the LXX complex), DNA-dependent protein kinase, catalytic subunit (DNA-PKcs), and Ku70/80 (1, 3). Ku and DNA-PKcs both assist in bridging the gap between the broken termini by promoting end synapsis. NHEJ repair of nonhomologous breaks requires remodeling of the DNA termini by processing enzymes, including polymerases (Pol λ and μ) and nucleases [Artemis and flap endonuclease 1 (Fen-1)], to prepare them for ligation (4-7). The LXX complex is recruited by Ku, which enables the ligation of the DNA ends.Most bacterial organisms also possess an NHEJ complex, composed of a more limited set of proteins, including ligase D (LigD) and Ku (8,9), which is required for DSB repair in stationary phase (10). The mycobacterial LigD gene encodes a multifunctional enzyme which, along with Ku, is ...