We present new observations of eta Carinae, strongly suggesting that i
t is a binary system. High dispersion measurements of the broad Pay em
ission line show periodic radial velocity variations that are nicely e
xplained by a star in a highly eccentric orbit. Velocity characteristi
cs of the system imply massive components, in accord with the luminosi
ty and spectral characteristics. Strong and variable wind-wind interac
tions are predicted to take place in eta Car on the basis of the orbit
al elements and physical characteristics of the components. The low ex
citation event predicted for the end of 1997 is underway, confirming t
he high coherence of the 5.52 year cycle and adding confidence to eta
Car as a binary system. We associate this event with periastron passag
e. A conclusive demonstration of the binary orbit is still pending, bu
t the present work has the advantages of bringing this mysterious obje
ct within a stellar evolution framework, and, for the first time in it
s history, predictions suitable for testing against future observation
s. (C) 1997 Elsevier Science B.V.