The lysogenic bacteriophage APSE infects "Candidatus Hamiltonella defensa," a facultative endosymbiont of aphids and other sap-feeding insects. This endosymbiont has established a beneficial association with aphids, increasing survivorship following attack by parasitoid wasps. Although APSE and "Ca. Hamiltonella defensa" are effectively maternally transmitted between aphid generations, they can also be horizontally transferred among insect hosts, which results in genetically distinct "Ca. Hamiltonella defensa" strains infecting the same aphid species and sporadic distributions of both APSE and "Ca. Hamiltonella defensa" among hosts. Aphids infected only with "Ca. Hamiltonella defensa" have significantly less protection than those infected with both "Ca. Hamiltonella defensa" and APSE. This protection has been proposed to be connected to eukaryotetargeted toxins previously discovered in the genomes of two characterized APSE strains. In this study, we have sequenced partial genomes from seven additional APSE strains to address the evolution and extent of toxin variation in this phage. The APSE lysis region has been a hot spot for nonhomologous recombination of novel virulence cassettes. We identified four new toxins from three protein families, Shiga-like toxin, cytolethal distending toxin, and YD-repeat toxins. These recombination events have also resulted in reassortment of the downstream lysozyme and holin genes. Analysis of the conserved APSE genes flanking the variable toxin cassettes reveals a close phylogenetic association with phage sequences from two other facultative endosymbionts of insects. Thus, phage may act as a conduit for ongoing gene exchange among heritable endosymbionts.Bacteriophage genomes are in a state of constant flux, reflecting a propensity to undergo rampant recombination (47,49,72). As such, phage are an important vector for horizontal gene transfer (HGT) within and between bacterial species (15,19,63). In addition, integrated temperate phage (prophage) frequently constitute the single greatest source of genomic variation among closely related bacterial strains (9,16,17). This flexible pool of phage-encoded loci has wide-ranging effects that can alter a bacterial host's antigenicity, toxicity, or even metabolic capacity (4,43,87).While infection by multiple phage types is common in freeliving bacteria, phage are completely absent from bacteria with host-restricted lifestyles, such as obligate intracellular mutualists of insects (2,24,60,86,90). However, among facultative (secondary) endosymbionts of insects, several phage have been found (21,44,54,83,85,91). APSE, a lambda-like phage, infects "Candidatus Hamiltonella defensa," a facultative endosymbiont known from a wide range of sap-feeding insects (aphids, mealybugs, psyllids, and whiteflies) (20,22,59,74,77). Pea aphids, Acyrthosiphon pisum (Hemiptera: Aphididae), infected with "Ca. Hamiltonella defensa" and APSE are significantly more successful at surviving attempted parasitism by the solitary endoparasitoid wasps Aphidius ervi an...