Hepatitis C Virus (HCV) has been identified as the major causative agent of non-A, non-B hepatitis. Core protein is not only a capsid protein of HCV but also a regulator of cellular functions, and plays an important role in the pathogenesis of HCV. Core protein is produced as an innate form (amino acids [a.a.] 1-191), and following processing produces a mature form (a.a. 1-173). This study demonstrates that the innate form regulates subcellular localization of the mature form, and that the innate form in the cytoplasm enhances p21 expression; on the other hand, the mature form in the nucleus suppresses p21 expression. These observations suggest that the innate form is not only a precursor of the mature form but also a regulator of the localization and functions of core protein.