Gene disruption and overexpression play central roles in the analysis of gene function. Homologous recombination is, in principle, the most efficient method of disrupting, modifying, or replacing a target gene. Although homologous integration of exogenous DNA into the genome occurs readily in
Saccharomyces cerevisiae
, it is rare in many other organisms. We identified and disrupted
Neurospora crassa
genes homologous to human
KU70
and
KU80
, which encode proteins that function in nonhomologous end-joining of double-stranded DNA breaks. The resulting mutants, named
mus
-
51
and
mus
-
52
, showed higher sensitivity to methyl methanesulfonate, ethyl methanesulfonate, and bleomycin than wild type, but not to UV, 4-nitroquinoline 1-oxide, camptothecin, or hydroxyurea. Vegetative growth, conidiation, and ascospore production in homozygous crosses were normal. The frequency of integration of exogenous DNA into homologous sequences of the genome in the
KU
disruption strains of
N. crassa
was compared with that in wild type,
mei-3
, and
mus
-
11
. In
mei-3
and
mus
-
11
, which are defective in homologous recombination, none or few homologous integration events were observed under any conditions. When
mtr
target DNA with ≈2-kb 5′ and 3′ flanking regions was used for transformation of the
KU
disruption strains, 100% of transformants exhibited integration at the homologous site, compared to 10 to 30% for a wild-type recipient. Similar results were obtained when the
ad-3A
gene was targeted for disruption. These results indicate that
KU
disruption strains are efficient recipients for gene targeting.