In 1996 a variant lyssavirus was isolated from an insectivorous bat (yellow bellied, sheath tail bat-Saccolaimus flaviventris) in Australia. The nucleocapsid protein (N), matrix protein (M), phosphoprotein (P), glycoprotein (G) and polymerase (L) genes of the Australian bat lyssavirus (ABL) insectivorous isolate were compared with that previously described from a frugivorous bat (Pteropus sp.), and showed sequence divergence at both the nucleotide and amino acid sequence level of 20% and 4-12%, respectively. Comparison of deduced protein sequences of ABL isolates from Pteropus and insectivorous bats, showed that viral isolates were homologous and varied by only a few percent. However, these viruses separated into two distinct clades; those isolated from Pteropus or those from Saccolaimus flaviventris bats, when comparisons were made at the nucleotide level. Nucleoprotein sequence comparisons also showed insectivorous isolates to be of the same putative genotype (genotype 7) as that isolated from frugivorous bats. Immediately after the isolation of ABL from an insectivorous bat, the first human case of ABL infection was identified. PCR and sequence analysis done on cerebrospinal fluid, brain and virus isolated from fresh brain tissue of this human case, was consistent with this infection originating from an insectivorous bat. Monoclonal antibody profiling studies of the virus isolated from the human brain tissues supported this conclusion. Sequence comparisons done on the nucleocapsid (N) gene of insectivorous or frugivorous bats showed no geographic associations between isolates but did delineate between the variants of ABL in Australia.