We have previously shown that IFN- inhibits hepatitis B virus (HBV) replication by noncytolytic mechanisms that either destabilize pregenomic (pg)RNA-containing capsids or prevent their assembly. Using immortalized murine hepatocyte cell lines stably transfected with a doxycycline (dox)-inducible HBV replication system, we now show that replication-competent pgRNA-containing capsids are not produced when the cells are pretreated with IFN- before HBV expression is induced with dox. Furthermore, the turnover rate of preformed HBV RNA-containing capsids is not changed in the presence of IFN- or IFN-␥ under conditions in which further pgRNA synthesis is inhibited by dox removal. In summary, these results demonstrate that types 1 and 2 IFN activate hepatocellular mechanism(s) that prevent the formation of replicationcompetent HBV capsids and, thereby, inhibit HBV replication.he hepatitis B virus (HBV) is a noncytopathic hepatotropic DNA virus that causes acute and chronic hepatitis and hepatocellular carcinoma (1). Viral clearance and disease pathogenesis during HBV infection are tightly associated with the appearance of a vigorous T cell response to all of the viral proteins (2-6). CD8ϩT cells are the main immune effector cells during HBV infection, because viral clearance and liver disease are blocked by depletion of CD8ϩT cells in acutely infected chimpanzees (7).Noncytolytic T cell functions play a role in HBV clearance, because HBV DNA largely disappears from the liver and blood long before the peak of liver disease in chimpanzees acutely infected with 10 8 genome equivalents of HBV (7,8), and this occurs as soon as IFN-␥ is produced in the liver of the infected animal (7, 9, 10), suggesting that IFN-␥ may inhibit HBV replication. In fact, we have shown (11) that adoptively transferred HBV-specific CD8ϩ T cells inhibit viral replication by a noncytopathic IFN-␥-mediated mechanism in an HBV transgenic mouse model. Similarly, intrahepatic induction of IFN-␣͞ inhibits HBV replication noncytopathically in transgenic mice (12, 13), and we have previously demonstrated that this occurs by reducing the intracellular content of HBV RNAcontaining capsids without altering either HBV gene expression, translation, capsid maturation, or virus secretion (13). Importantly, IFN- and -␥ inhibit HBV replication in immortalized hepatocyte cell lines derived from HBV transgenic mice (14), confirming that these cytokines mediate noncytolytic inhibition of HBV replication. Furthermore, the antiviral activity is induced within the first 3 h of IFN- signaling (15), consistent with the rapid clearance kinetics of HBV RNA-containing capsids in HBV transgenic mice (13) and immortalized HBV transgenic hepatocytes (14). However, our previous studies did not reveal whether the antiviral effect of IFN- prevented the formation of replication-competent HBV RNAcontaining capsids or degraded existing capsids.To address these questions, in the current study, we examined the antiviral mechanism whereby IFN- and -␥ inhibit HBV replication in ...