The strategic importance of the genome sequence of the gray, short-tailed opossum, Monodelphis domestica, accrues from both the unique phylogenetic position of metatherian (marsupial) mammals and the fundamental biologic characteristics of metatherians that distinguish them from other mammalian species. Metatherian and eutherian (placental) mammals are more closely related to one another than to other vertebrate groups, and owing to this close relationship they share fundamentally similar genetic structures and molecular processes. However, during their long evolutionary separation these alternative mammals have developed distinctive anatomical, physiologic, and genetic features that hold tremendous potential for examining relationships between the molecular structures of mammalian genomes and the functional attributes of their components. Comparative analyses using the opossum genome have already provided a wealth of new evidence regarding the importance of noncoding elements in the evolution of mammalian genomes, the role of transposable elements in driving genomic innovation, and the relationships between recombination rate, nucleotide composition, and the genomic distributions of repetitive elements. The genome sequence is also beginning to enlarge our understanding of the evolution and function of the vertebrate immune system, and it provides an alternative model for investigating mechanisms of genomic imprinting. Equally important, availability of the genome sequence is fostering the development of new research tools for physical and functional genomic analyses of M. domestica that are expanding its versatility as an experimental system for a broad range of research applications in basic biology and biomedically oriented research.Compilation and publication of the genome sequence of the gray short-tailed opossum, Monodelphis domestica, a metatherian (marsupial) mammal (Mikkelsen et al. 2007b), create unique opportunities for investigating the evolutionary processes that have shaped the structural and functional attributes of mammalian and other vertebrate genomes. These opportunities arise from both the unique phylogenetic position of metatherians in the vertebrate scheme and some fundamental characteristics of metatherians that distinguish them from other mammalian species.Modern mammals comprise three major lineages (Fig. 1). Judged from multiple nuclear sequence and mtDNA alignments, the most closely related of these, the Metatheria and Eutheria (placental mammals), diverged from their most recent common ancestor ∼173-190 million years ago (Mya) (Kumar and Hedges 1998;Woodburne et al. 2003;van Rheede et al. 2006). The other major clade, the Prototheria, of which the egg-laying monotremes (platypus and four species of echidnas) are the only living representatives, branched off 20-35 million years (Myr) prior to the metatherian-eutherian divergence (Phillips and Penny 2003;Woodburne et al. 2003;van Rheede et al. 2006). 2 By way of reference, the separation of mammals and birds occurred at least 310 Mya (d...