RNase PH is one of the exoribonucleases that catalyze the 3 end processing of tRNA in bacteria. RNase PH removes nucleotides following the CCA sequence of tRNA precursors by phosphorolysis and generates mature tRNAs with amino acid acceptor activity. In this study, we determined the crystal structure of Aquifex aeolicus RNase PH bound with a phosphate, a co-substrate, in the active site at 2.3-Å resolution. RNase PH has the typical ␣/ fold, which forms a hexameric ring structure as a trimer of dimers. This ring structure resembles that of the polynucleotide phosphorylase core domain homotrimer, another phosphorolytic exoribonuclease. Four amino acid residues, Arg-86, Gly-124, Thr-125, and Arg-126, of RNase PH are involved in the phosphate-binding site. Mutational analyses of these residues showed their importance in the phosphorolysis reaction. A docking model with the tRNA acceptor stem suggests how RNase PH accommodates substrate RNAs.The processing of tRNA precursors into mature tRNAs involves several steps, including the removal of the 5Ј and 3Ј extension sequences (1-4). This removal of the 5Ј and 3Ј extension sequences is necessary for producing the CCA sequence, which is essential for tRNA aminoacylation and subsequent protein synthesis (2-4). The 5Ј extension is removed, in a single step reaction, by the ribonucleoprotein RNase P, which is conserved in all organisms (5). On the other hand, the removal of the 3Ј extension is a more complex process. In archaea and eukaryotes, the 3Ј extension sequence is removed by RNase Z in a single step reaction (6, 7), whereas in bacteria a number of RNases perform this function in multistep reactions (2-4). In Escherichia coli, the proposed 3Ј processing pathway involves the following steps (2-4). First, an endonucleolytic cleavage occurs downstream of the CCA sequence. RNases E and III have been identified as participating in this first step. Then the endonucleolytic reaction is followed by the 5Ј-terminal processing by RNase P, if the 3Ј trailer sequence of the tRNA precursor is short. However, if the tRNA precursor has a long 3Ј trailer sequence, an exonucleolytic reaction removes some nucleotides from the 3Ј end before RNase P processes the 5Ј end. This exonucleolytic reaction involves RNases PH, T, BN, D, II, and polynucleotide phosphorylase. Finally, these exonucleases remove all of the nucleotides downstream of the CCA sequence; RNase PH and RNase T are usually most effective (8).In this final trimming, RNase PH catalyzes a 3Ј exonucleolytic, phosphorolytic reaction, which needs a phosphate as the co-substrate, and produces a nucleoside diphosphate (9, 10). RNase PH was shown to catalyze the reverse reaction in vitro,