The long terminal repeat retrotransposon, Magnaporthe gypsy-like element (MAGGY), has been shown to be targeted for cytosine methylation in a subset of Magnaporthe oryzae field isolates. Analysis of the F 1 progeny from a genetic cross between methylation-proficient (Br48) and methylation-deficient (GFSI1-7-2) isolates revealed that methylation of the MAGGY element was governed by a single dominant gene. Positional cloning followed by gene disruption and complementation experiments revealed that the responsible gene was the DNA methyltransferase, MoDMT1, an ortholog of Neurospora crassa Dim-2. A survey of MAGGY methylation in 60 Magnaporthe field isolates revealed that 42 isolates from rice, common millet, wheat, finger millet, and buffelgrass were methylation proficient while 18 isolates from foxtail millet, green bristlegrass, Japanese panicgrass, torpedo grass, Guinea grass, and crabgrass were methylation deficient. Phenotypic analyses showed that MoDMT1 plays no major role in development and pathogenicity of the fungus. Quantitative polymerase chain reaction analysis showed that the average copy number of genomic MAGGY elements was not significantly different between methylation-deficient and -proficient field isolates even though the levels of MAGGY transcript were generally higher in the former group. MoDMT1 gene sequences in the methylation-deficient isolates suggested that at least three independent mutations were responsible for the loss of MoDMT1 function. Overall, our data suggest that MoDMT1 is not essential for the natural life cycle of the fungus and raise the possibility that the genus Magnaporthe may be losing the mechanism of DNA methylation on the evolutionary time scale.C YTOSINE methylation is a chemical modification of DNA and is at the heart of an epigenetic mechanism involved in the control of a variety of biological processes, such as embryogenesis, cell differentiation, X-chromosome inactivation, genomic imprinting, and gene silencing (Laird and Jaenisch 1996). Cytosine methylation occurs in all three domains of life, namely, Eubacteria, Archaebacteria, and Eukaryota, and is regarded as an ancestral mechanism that antedates the divergence of eukaryotes and prokaryotes (Tajima and Suetake 1998). Consistent with this, the catalytic enzymes of cytosine methylation, the cytosine DNA methyltransferases (DMTs), are conserved in eukaryotes and prokaryotes and contain nine well-conserved motifs arranged in the same order along their primary structure (Kumar et al. 1994;Jurkowski and Jeltsch 2011).Interestingly, however, the pattern and extent of genomic DNA methylation shows considerable diversity among eukaryotes (Yoder et al. 1997; Colot and Rossignol 1999;Rabinowicz et al. 1999). While cytosine DNA methylation is common in higher plants and vertebrates, it is virtually absent in certain lower organisms, such as Saccharomyces cerevisiae, Schizosaccharomyces pombe, and Caenorhabditis elegans (Antequera et al. 1984;Proffitt et al. 1984;Hodgkin 1994). Consistent with this observation, ...