Abstract Background: 5′→3′ exoribonuclease 1 (XRN1) plays an important role in innate immunity by preventing double stranded RNA (dsRNA) accumulation. In addition, XRN1 has emerged as a potential target for drug discovery efforts as tumors with high interferon signaling are sensitive to XRN1 loss using genetic tools. To date, no XRN1-selective inhibitors have been disclosed. This study details characterization of two small-molecule inhibitors of XRN1, 3’-5’ adenosine diphosphate (pAp) and Compound 1, through biochemical, biophysical, and structural analysis. Materials and Methods: Enzymatic and biophysical assays for XRN1 were developed, and characterization of XRN1 inhibitors was performed. To enable structure-based drug design, novel constructs of human XRN1 were designed and characterized for both catalytic activity and compound binding using biochemical and biophysical methods. In addition, cocrystal structures of XRN1 were determined for each inhibitor. Results: pAp was found to be a potent, RNA-competitive inhibitor of XRN1 dsRNA degradation with similar activity for XRN2. Cocrystal structures of XRN1 with pAp confirm the nucleotide analog binds in the active site of the enzyme. Enzymatic and biophysical techniques indicate Compound 1 is also a substrate-competitive inhibitor with single-digit micromolar affinity for XRN1. However, Compound 1 is highly selective for XRN1 and does not bind or inhibit XRN2. High-resolution crystal structures indicate that Compound 1 binds in an allosteric binding site, confirming the mechanism of inhibition and selectivity profile determined by in vitro assays. Conclusions: This work demonstrates XRN1 can be selectively inhibited by small-molecule inhibitors. Human XRN1 structures provide a tool for structure-based drug design efforts against this compelling oncology target.Conflict of Interests: All authors are current or former employees and shareholders of Accent Therapeutics, Inc. Citation Format: Gordon J Lockbaum, E. Allen Sickmier, Brian A Sparling, Kevin Knockenhauer, Nicholas Holt, Julie Liu, Maureen M Lynes, Simina Grigoriu, Kenneth W Duncan, Robert A Copeland, P. Ann Boriack-Sjodin. Characterization of selective, allosteric inhibitors of human XRN1 [abstract]. In: Proceedings of the AACR-NCI-EORTC Virtual International Conference on Molecular Targets and Cancer Therapeutics; 2023 Oct 11-15; Boston, MA. Philadelphia (PA): AACR; Mol Cancer Ther 2023;22(12 Suppl):Abstract nr B073.