Endogenous small interfering RNAs (endo-siRNAs) regulate diverse gene expression programs in eukaryotes by either binding and cleaving mRNA targets or mediating heterochromatin formation; however, the mechanisms of endo-siRNA biogenesis, sorting, and target regulation remain poorly understood. Here we report the identification and function of a specific class of germline-generated endo-siRNAs in Caenorhabditis elegans that are 26 nt in length and contain a guanine at the first nucleotide position (i.e., 26G RNAs). 26G RNAs regulate gene expression during spermatogenesis and zygotic development, and their biogenesis requires the ERI-1 exonuclease and the RRF-3 RNA-dependent RNA polymerase (RdRP). Remarkably, we identified two nonoverlapping subclasses of 26G RNAs that sort into specific RNA-induced silencing complexes (RISCs) and differentially regulate distinct mRNA targets. Class I 26G RNAs target genes are expressed during spermatogenesis, whereas class II 26G RNAs are maternally inherited and silence gene expression during zygotic development. These findings implicate a class of endo-siRNAs in the global regulation of transcriptional programs required for fertility and development.endogenous siRNA ͉ germline ͉ RNA interference S mall RNAs bind Argonaute/Piwi proteins in the RNAinduced silencing complex (RISC) and, through base pairing, guide RISC to silence their cognate targets. While the taxonomy of small RNAs remains fluid, they can be defined in part by nucleotide length, 5Ј nucleotide composition, chemical modifications, genetic requirements for biogenesis, mode of silencing, and biological functions. For example, microRNAs are processed from double-stranded hairpin precursors by the RNase III-like enzyme Dicer to the Ϸ22-nt mature form containing a 5Ј-monophosphate nucleotide. The microRNAs associate with Argonaute (Ago) proteins in RISC and mediate translational repression and/or degradation of their target mRNAs (1). In contrast, Piwi-interacting RNAs (piRNAs) are typically longer than microRNAs, possess a uridine in the first nucleotide, and are generated by a Dicer-independent self-amplification pathway. The piRNAs bind to Piwi proteins in RISC and silence transposons (2).Endogenous small interfering RNAs (endo-siRNAs) represent an emerging class of small RNAs described and characterized in Caenorhabditis elegans by Ambros et al. (3). These endo-siRNAs are perfectly antisense to target transcripts and require the C. elegans Dicer, DCR-1, the RNA-dependent RNA polymerase (RdRP) RRF-3, and the exonuclease ERI-1 for expression (4,5). By large-scale pyrosequencing, Ruby et al. determined that other endo-siRNAs target transcripts associated with spermatogenesis and transposons (6). Therefore, C. elegans endo-siRNAs appear to be a diverse class of small RNAs, with distinct biological functions and genetic requirements for biogenesis. The recent discovery of endo-siRNAs derived from transposable elements, natural antisense transcripts, and hairpin RNAs in Drosophila melanogaster and Mus musculus (7-12) fur...