L-A is a persistent double-stranded RNA virus commonly found in the yeast Saccharomyces cerevisiae. Isolated L-A virus synthesizes positive strand transcripts in vitro. We found that the 5 termini of the transcripts are diphosphorylated. The 5-terminal nucleotide is G, and GDP was the best substrate among those examined to prime the reaction. When GTP was used, the triphosphate of GTP incorporated into the 5-end was converted to diphosphate. This activity was not dependent on host CTL1 RNA triphosphatase. The 5-end of the GMP-primed transcript also was converted to diphosphate, the -phosphate of which was derived from the ␥-phosphate of ATP present in the polymerization reaction. These results demonstrate that L-A virus commands elaborate enzymatic systems to ensure its transcript to be 5-diphosphorylated. Transcripts of M1, a satellite RNA of L-A virus, also had diphosphate at the 5 termini. Because viral transcripts are released from the virion into the cytoplasm to be translated and encapsidated into a new viral particle, a stage most vulnerable to degradation in the virus replication cycle, our results suggest that the 5-diphosphate status is important for transcript stability. Consistent with this, L-A transcripts made in vitro are resistant to the affinity-purified Ski1p 5-exonuclease. We also discuss the implication of these findings on translation of viral RNA. Because the viral transcript has no conventional 5-cap structure, this work may shed light on the metabolism of non-self-RNA in yeast.The 5Ј-cap (m 7 GpppXp) and 3Ј-poly(A) tail structures are the hallmark of eukaryotic mRNAs and have important biological functions in promoting stability in the nucleus, transport to the cytoplasm, and translation and stability in the cytoplasm. Therefore, many viruses furnish their transcripts with the 5Ј-cap structure utilizing their own or cellular enzymes or even by snatching the structure from cellular mRNAs (1-3). Transcripts made by T7 RNA polymerase are recognized as foreign and induce innate immune responses in animal cells. Recent studies suggest that the 5Ј-triphosphate of the transcripts as well as secondary structure, are involved in these responses (4, 5). Therefore, the 5Ј-end of RNA bears important information concerning on self or non-self for the host cells.L-A is a persistent double-stranded RNA (dsRNA) 2 virus commonly found in the laboratory strains of the yeast Saccharomyces cerevisiae (6). The virus has no extracellular transmission pathway. The viral genome is 4.6-kb-long, and only one strand (the positive strand) encodes proteins; the major 76-kDa coat protein Gag and a minor 170-kDa Gag-Pol (7, 8). The minor protein is made from the two overlapping genes by a Ϫ1 ribosomal frameshifting mechanism (9). The Pol domain of the fusion protein has consensus motifs for RNA-dependent RNA polymerases. The RNA genome is packed inside of a 39-nm icosahedral shell consisting of 60 Gag asymmetric dimers (10, 11). One molecule or two of Gag is replaced by Gag-Pol because the fusion protein is essential ...