Tetrahymena eliminates micronuclear-limited sequences from the developing macronucleus during sexual reproduction. Homology between the sequences to be eliminated and ∼28-nucleotide small RNAs (scnRNAs) associated with an Argonaute family protein Twi1p likely underlies this elimination process. However, the mechanism by which Twi1p-scnRNA complexes identify micronuclear-limited sequences is not well understood. We show that a Twi1p-associated putative RNA helicase Ema1p is required for the interaction between Twi1p and chromatin. This requirement explains the phenotypes of EMA1 KO strains, including loss of selective down-regulation of scnRNAs homologous to macronuclear-destined sequences, loss of H3K9 and K27 methylation in the developing new macronucleus, and failure to eliminate DNA. We further demonstrate that Twi1p interacts with noncoding transcripts derived from parental and developing macronuclei and this interaction is greatly reduced in the absence of Ema1p. We propose that Ema1p functions in DNA elimination by stimulating base-pairing interactions between scnRNAs and noncoding transcripts in both parental and developing new macronuclei.[Keywords: RNA; heterochromatin; small RNA; noncoding RNA; Tetrahymena] Supplemental material is available at http://www.genesdev.org. Received April 7, 2008; revised version accepted June 25, 2008. Heterochromatin functions in various chromosomal processes, including regulation of gene expression, chromosome segregation, and nuclear organization (for review, see Grewal and Jia 2007). In diverse eukaryotes, RNAirelated mechanisms involving small RNAs complexed with Argonaute family proteins mediate heterochromatin formation (for review, see Martienssen and Moazed 2006;Grewal and Jia 2007). However, the mechanism by which small RNAs target heterochromatin formation is not completely understood. In ciliated protozoans, heterochromatin formation is also induced by an RNAi-related mechanism, followed by programmed DNA elimination of germline-specific sequences from the developing somatic nucleus (for review, see Meyer and Chalker 2006). Thus, programmed DNA elimination in ciliates serves as a model to study small RNA-mediated heterochromatin formation.Like most ciliated protozoans, Tetrahymena thermophila exhibits nuclear dimorphism. Each cell contains a germline micronucleus (Mic) and a somatic macronucleus (Mac). It is likely that only the Mac contributes to gene expression. In vegetative growth, the Mic and Mac replicate/divide, and sister nuclei are segregated to daughter cells. In the sexual process of conjugation ( Fig. 1A; see also Supplemental Fig. S1), the Mic undergoes meiosis to form two haploid pronuclei, one of which is reciprocally exchanged between the two conjugating cells. The migratory and stationary pronuclei then fuse to create a zygotic nucleus that divides mitotically twice to produce the next generation of new Macs and Mics. Then, paired cells separate, one of the two new Mics and the parental Mac are destroyed and, if fed, they resume vegetative ...