Adenovirus virus-associated (VA) RNA, maintains efficient protein synthesis during the late phase of infection by preventing the activation of the double-stranded-RNA-dependent protein kinase, DAI. A secondary structure model for VA RNA, predicts the existence of two stems joined by a complex stem-loop structure, the central domain. The structural consequences of mutations and compensating mutations introduced into the apical stem lend support to this model. In transient expression assays for VA RNA function, foreign sequences inserted into the apical stem were fully tolerated provided that the stem remained intact. Mutants in which the base of the apical stem was disrupted retained partial activity, but truncation of the apical stem abolished the ability of the RNA to block DAI activation in vitro, suggesting that the length and position of the stem are both important for VA RNA function. These results imply that VA RNA, activity depends on secondary structure at the top of the apical stem as well as in the central domain and are consistent with a two-step mechanism involving DAI interactions with both the apical stem and the central domain. Adenovirus virus-associated (VA) RNA, is required for the maintenance of protein synthesis at late times during infection. This small RNA antagonizes the cell's antiviral defense mechanism by inhibiting the activation of the interferon-induced, double-stranded-RNA (dsRNA)-dependent protein kinase, DAI. In the absence of VA RNA,, activated DAI phosphorylates eukaryotic initiation factor 2 (eIF-2), impeding the initiation of protein synthesis (reviewed in reference 16).