Saccharomyces cerevisiae contains two double-stranded RNA (dsRNA) molecules, L and M, encapsulated in virus-like particles. After cells are transferred from dense ('3C 15N) to light ('2C 14N) medium, only two density classes of dsRNA are found, fully light (LL) and fully dense (HH). Cells contain single-stranded copies of both dsRNAs and, at least for L dsRNA, >99% of these single strands are the positive protein-encoding strand. Single-stranded copies of L and M dsRNA accumulate rapidly in cells arrested in the Gl phase. These results parallel previous observations on L dsRNA synthesis and are consistent with a role of the positive single strands as intermediates in dsRNA replication. We propose that new positive strands are displaced from parental molecules and subsequently copied to produce the completely new duplexes.Killer strains of Saccharomyces cerevisiae harbor viruslike particles (VLPs) which contain linear double-stranded RNA (dsRNA) molecules. The two dsRNA species are separately encapsulated. M dsRNA (1.9 kilobases [kb]) codes for the protein toxin responsible for the killer phenotype. L dsRNA (4.9 kb) specifies the major capsid protein of both L and M particles. These dsRNA molecules are present in multiple copies, are transmitted efficiently during vegetative growth, and segregate in a non-Mendelian fashion in meiosis (for a review, see reference 34).Neither the yeast dsRNAs nor the intact VLPs are infectious. In contrast to viruses, they replicate in apparent harmony with the yeast cell, so that the absolute quantity of dsRNAs doubles each generation. Neither the mechanism of replication nor the way replication is integrated within the cell cycle is clearly understood. However, in at least one yeast strain, L dsRNA replication is cell cycle phase specific, occurring in Gl phase but not S phase (22,37).Infectious dsRNA viruses are found in vertebrates (reovirus and Colorado tick fever virus), plants (clover wound tumor and rice dwarf virus), and bacteria (Pseudomonas bacteriophage 46) (29). Information concerning the replication of two of these viral dsRNAs is available. Reovirus replicates by a mechanism in which a viral particle-associated, RNA-dependent RNA polymerase produces full-length, single-stranded RNA (ssRNA) molecules which are displaced from the parental dsRNA. These ssRNAs first act as mRNAs for viral protein synthesis and are then copied to produce dsRNA and simultaneously packaged into virus particles (24). Displacement of the new ssRNAs from the parental dsRNA during reovirus replication results in the integrity of parental duplexes being conserved. Bacteriophage +6 also replicates by a single-stranded displacement mechanism, but the displaced strand is a parental one (23,28). Therefore, two semiconserved duplexes, each containing one old strand and one new strand, are produced when a parental duplex enters a duplication event.Yeast VLPs possess an RNA-dependent RNA transcriptase, which has been shown in vitro to produce full-length ssRNAs from both L and M dsRNAs (7,14,32 it has ...