Two enzymatic activities that degrade double-stranded RNA have been partially purified from HeLa cell nuclei using reoviral [3H]RNA as the substrate. The two active fractions, separated by chromatography on phosphocellulose, are designated PC I and PC II. Both fractions degrade a variety of double-stranded RNAs with an absolute requirement for a divalent cation. However, they are distinct by at least five criteria. 1)PC I degrades a variety of single- and double-stranded RNAs, single- and double-stranded DNAs, and DNA.RNA hybrids, in addition to double-stranded reoviral RNA. In contrast, PC II has maximal activity with reoviral RNA, some activity with rRNA, and much less activity with the other substrates. 2) Analyses of reaction products by sucrose gradient centrifugation and chromatography on Sephadex G-100 and DEAE-cellulose indicate that, PC I cleaves reoviral RNA endonucleolytically to a final mixture of mono- and oligonucleotides, whereas the only acid- or alcohol-soluble products of PC II are 5'-XMPs produced exonucleolytically. 3) PC I activity is stimulated 2-fold more by MnCl2 than by MgCl2, whereas PC II activity is stimulated 3-fold more by MgCl2 than by MnCl2. 4) PC I activity is inhibited by NaCl concentrations as low as 10 mM, whereas PC II requires 50 to 80 mM NaCl for optimal activity. 5)Estimated by their sedimentation rates in glycerol gradients, PC I and PC II have apparent molecular weights of 55,000 and 20,000, respectively.