Here we investigate mechanisms underlying the diversification of biological forms using crucifer leaf shape as an example. We show that evolution of an enhancer element in the homeobox gene REDUCED COMPLEXITY (RCO) altered leaf shape by changing gene expression from the distal leaf blade to its base. A single amino acid substitution evolved together with this regulatory change, which reduced RCO protein stability, preventing pleiotropic effects caused by its altered gene expression. We detected hallmarks of positive selection in these evolved regulatory and coding sequence variants and showed that modulating RCO activity can improve plant physiological performance. Therefore, interplay between enhancer and coding sequence evolution created a potentially adaptive path for morphological evolution.Supplemental material is available for this article.Received September 29, 2016; revised version accepted October 25, 2016. Understanding the genetic basis for evolutionary change is a fundamental problem in biology. Morphological diversity is often underpinned by cis-regulatory divergence of developmental genes and consequent spatiotemporal modification of their expression (Gompel et al. 2005;Hay and Tsiantis 2006;Prud'homme et al. 2006;Carroll 2008;Chan et al. 2010;Frankel et al. 2011;Studer et al. 2011;Arnoult et al. 2013;Rast-Somssich et al. 2015;Indjeian et al. 2016). However, the origin of specific cisregulatory elements underlying morphological diversity is still poorly understood (Rebeiz et al. 2015). For example, it is unclear whether such cis elements tend to arise de novo from rapidly evolving sequences or through the cooption of existing conserved regulatory sequences (Rebeiz et al. 2011;Boyd et al. 2015;Villar et al. 2015). Furthermore, it has not been investigated whether and how coding sequences evolve in concert with regulatory changes to optimize gene function in a new expression domain. Finally, links between regulatory changes underlying morphological change and organismal physiology and fitness remain scarce.Plant leaves present a useful genetic model to tackle these questions because they show substantial morphological variation (Shleizer-Burko et al. 2011;Bar and Ori 2014) and have considerable eco-physiological importance as the major site of photosynthetic carbon fixation in terrestrial ecosystems (Givnish 1978). The REDUCED COMPLEXITY (RCO) gene played a key role in leaf shape diversification in the crucifer family (Sicard et al. 2014;Vlad et al. 2014), to which the reference plant Arabidopsis thaliana belongs. RCO arose through gene duplication and encodes a class I homeobox leucine zipper protein.Its function was discovered in Cardamine hirsuta, where it acts to divide the leaf into distinct leaflets by locally repressing growth at the leaf margin, creating a complex shape. This species-specific activity of RCO arose by neofunctionalization following gene duplication of its ancestral paralog, LMI1, which is conserved in seed plants. Specifically, RCO acquired a novel expression domain within...