Dicer gene dcl2, required for the RNA silencing antiviral defense response in the chestnut blight fungus Cryphonectria parasitica, is inducible upon mycovirus infection and promotes viral RNA recombination. We now report that the antiviral defense response requires only one of the four C. parasitica Argonaute-like protein genes, agl2. The agl2 gene is required for the virus-induced increase in dcl2 transcript accumulation. Agl2 and dcl2 transcripts accumulated to much higher levels in response to hairpin RNA production or infection by a mutant CHV1-EP713 hypovirus lacking the suppressor of RNA silencing p29 than to wild-type CHV1-EP713. Similar results were obtained for an agl2-promoter/EGFP-reporter construct, indicating that p29-mediated repression of agl2 transcript accumulation is promoter-dependent. Significantly, the agl2 deletion mutant exhibited stable maintenance of non-viral sequences in recombinant hypovirus RNA virus vectors and the absence of hypovirus-defective interfering (DI) RNA production. These results establish a key role for an Argonaute gene in the induction of an RNA silencing antiviral defense response and the promotion of viral RNA recombination. They also provide evidence for a mechanism by which a virus-encoded RNA silencing suppressor represses the transcriptional induction of an RNA silencing component.Cryphonectria parasitica ͉ mycovirus ͉ defective interfering RNA ͉ silencing suppressor ͉ RNA virus vector A n RNA-based antiviral defense response, related to RNA interference (1), serves as a key component of the innate immunity repertoire in plants, invertebrates, and fungi (2, 3). Common elements of this response across Kingdoms include the action of conserved ribonucleases: members of the Dicer-like and Argonaute-like protein families (4). Dicer nucleases recognize viral double-stranded (ds) and structured RNAs and use the associated RNase III-type activity to process these RNAs into small RNAs of 21-24 nts in length, termed virus-derived small (vs) RNAs. The vsRNAs are incorporated into an effector complex with the aid of an Argonaute family protein. One strand of the vsRNA is removed and the remaining guide strand then targets the effector complex to the cognate viral RNA, which is cleaved, or sliced, by the Argonaute-associated RNase H-like activity.Four Dicer proteins drive the RNA silencing pathways in the model plant, Arabidopsis thaliana (5). All four Dicers have been implicated in antiviral RNA silencing (3, 6-8). Studies with Drosophila melanogaster (9, 10) and with mosquitoes (11) have identified a role for Dicer-2, the Dicer involved in siRNA production, in insect antiviral defense. The contribution to antiviral defense of the second Dicer, Dicer-1, remains unclear due to its essential role in microRNA processing and development (12).Antiviral RNA silencing has been demonstrated in the filamentous Ascomycete fungi Cryphonectria parasitica, the chestnut blight fungus (13), and Aspergillus nidulans (14). Only one of the two C. parasitica Dicer genes, dcl2, was shown to be...