The NS3 protease of hepatitis C virus (HCV) has emerged as one of the best characterized targets for next-generation HCV therapy. The tetrapeptide 1 and pentapeptide 2 are alpha-ketoamide-type HCV serine protease inhibitors with modest potency. We envisioned that the 1,2,3,4-tetrahydroisoquinoline-3-carboxylamide (Tic) moiety could be cyclized to the P3 capping group. The resulting macrocycle could enhance the binding through its extra contact with the Ala156 methyl group. Macrocyclization could also provide a less peptidic HCV inhibitor. Synthesis started from dipeptide 5, which was obtained via a coupling of two amino acid derivatives. The N-terminal was capped as hept-6-enoylamide to give 6. Hydroboration of the double bond afforded alcohol 7, the precursor to the macrocycle 8. The macrocyclization was achieved under Mitsunobu conditions (PPh(3), ADDP). The macrocyclic acid 9 was then combined with appropriate right-hand fragments 12, 14, or 16, which was prepared from common intermediate 11. Finally, oxidation of alpha-hydroxyamide provided target molecule alpha-ketoamides 17, 18, and 21. The C-terminal esters were then elaborated to carboxylic acids 19 and 20, and amides 20 and 23. The inhibitors 17-23 were tested in HCV NS3 protease continuous assay. Tripeptide 17 was more potent than the larger acyclic tetrapeptide 1. The tetrapeptides 18-20 were as active as 17. Most significantly, the pentapeptides (21-23) were much better inhibitors (K(i) = 0.015-0.26 microM). The carboxylic acid (22) and amide (23) were 57-80 times more potent than the acyclic analogue 2. The X-ray crystal structure of compound 23 bound to the protease revealed that the macrocycle adopted a donutlike conformation and had close contact with the Ala156 methyl group. The ketone carbonyl formed a reversible covalent bond with Ser139. The n-propyl of P1 novaline and the aromatic ring of P2' phenylglycine formed a C-shaped clamp around the Lys136 side chain.