A highly efficient RNA-synthesizing system with isolated HeLa cell mitochondria has been developed and characterized regarding its requirements and its products. In this system, transcription is initiated and the transcripts are processed in a way which closely reproduces the in vivo patterns. Total RNA labeling in isolated mitochondria proceeds at a constant rate for about 30 min at 37°C; the estimated rate of synthesis is at least 10 to 15% of the in vivo rate. Polyadenylation of the mRNAs is less extensive in this system than in vivo. Furthermore, compared with the in vivo situation, rRNA synthesis in vitro is less efficient than mRNA synthesis. This is apparently due to a decreased rate of transcription initiation at the rRNA promoter and probably a tendency also for premature termination of the nascent rRNA chains. The 5'-end processing of rRNA also appears to be slowed down, and it is very sensitive to the incubation conditions, in contrast to mRNA processing. It is suggested that the lower efficiency and the lability of rRNA synthesis and processing in isolated mitochondria may be due to cessation of import from the cytoplasm of ribosomal proteins that play a crucial role in these processes. The formation of the light-strand-coded RNA 18 (7S RNA) is affected by high pH or high ATP concentration differently from the overall light-strand transcription. The dissociation of the two processes may have important implications for the mechanism of formation and the functional role of this unusual RNA species. The high efficiency, initiation capacity, and processing fidelity of the in vitro RNAsynthesizing system described here make it a valuable tool for the analysis of the role of nucleocytoplasmicmitochondrial interactions in organelle gene expression.Recent work from this laboratory has shown that the heavy (H) strand of HeLa cell mitochondrial DNA (mtDNA) is the site of two overlapping transcription events (4a, 12, 19. 20). A considerable amount of evidence suggests that one of these events is responsible for the synthesis of the bulk of rRNA, whereas the other results in the synthesis of a polycistronic molecule which corresponds to almost the entire H strand and is destined to be processed to yield the mRNAs and most of the tRNAs encoded in the H strand (Fig. 1). The initiation of the two H-strand transcription events and that of light (L)-strand transcription occur in close proximity to each other in the region of mtDNA upstream of the origin of H-strand synthesis (10). This clustering of the three putative promoters may underlie the integrated control of expression of the corresponding transcription units, whereas their proximity to the origin of Hstrand synthesis may reflect the existence of a link between transcription events and mtDNA replication. To investigate further, under conditions allowing easy experimental manipulations, the molecular mechanisms, controls, and interrelationships of the mtDNA transcription and RNA processing events which occur in HeLa cell mitochondria, we developed a system f...