Integration of foreign DNA was observed in the Gram-positive human pathogen Streptococcus pneumoniae (pneumococcus) after transformation with DNA from a recombinant Escherichia coli bacteriophage carrying a pneumococcal insert. Segments of DNA replaced chromosomal sequences adjacent to the region homologous with the pneumococcal insert, whence the name insertion-deletion. Here we report that a pneumococcal insert was absolutely required for insertion-deletion formation, but could be as short as 153 bp; that the sizes of foreign DNA insertions (289 -2,474 bp) and concomitant chromosomal deletions (45-1,485 bp) were not obviously correlated; that novel joints clustered preferentially within segments of high GC content; and that the crossovers in 29 independent novel joints were located 1 bp from the border or within short (3-10 nt long) stretches of identity (microhomology) between resident and foreign DNA. The data are consistent with a model in which the insert serving as a homologous recombination anchor favors interaction and subsequent illegitimate recombination events at microhomologies between foreign and resident sequences. The potential of homologydirected illegitimate recombination for genome evolution was illustrated by the trapping of functional heterologous genes. G enetic transformation, which was discovered in the Grampositive Streptococcus pneumoniae (pneumococcus) (1), is believed to play a central role in the biology of this human pathogen through its contribution to genetic plasticity (see ref.2 for a review). Transformation with naked DNA allows intraspecies and interspecies gene transfer. As such exchanges involve homologous recombination, they are generally ''conservative,'' i.e., they do not result in the creation of novel sequences but simply in a redistribution of previously existing genes. However, a pre-existing gene also can be modified when the two interacting sequences are partly divergent. Homologous recombination then leads to the production of mosaic genes, as exemplified in the case of the pbp genes of S. pneumoniae that encode altered penicillin-binding proteins with decreased affinity for -lactam antibiotics (see ref. 3 for a review).Besides these conservative facets of transformation, is there any potential for the creation of novel sequence combinations or genes? The observation that transformation with chimeric donor DNA is mutagenic (4) suggested that shuffling and reassembly of previously unrelated sequences could readily occur in S. pneumoniae. The chimeric DNA extracted from a recombinant Escherichia coli bacteriophage carrying a pneumococcal insert produced illegitimate recombinants at a frequency of about 0.5% that of homologous recombinants (4). Illegitimate recombinants resulted from simultaneous insertion of heterologous vector (i.e., ) sequences and deletion of chromosomal sequences adjacent to the region homologous to the insert. These illegitimate events were therefore termed insertion-deletions (InsDels). As the pneumococcal insert in the chimeric donor seemed r...