SummaryArgonaute (Ago) proteins are widespread nucleic acid-guided enzymes that recognize targets through complementary base pairing. While in eukaryotes Agos are involved in RNA silencing, the functions of prokaryotic Agos (pAgos) remain largely unknown. In particular, a clade of truncated and catalytically inactive pAgos (short pAgos) lacks characterization. Here, we reveal that a short pAgo protein in Sulfolobus islandicus, together with its two genetically associated proteins, Aga1 and Aga2, provide robust antiviral protection via abortive infection. Aga2 is a membrane-associated toxic effector that binds anionic phospholipids via a basic pocket, which is essential for its cell killing ability. Ago and Aga1 form a stable complex that exhibits RNA-directed nucleic acid recognition ability and directly interacts with Aga2, pointing to an immune sensing mechanism. Together, our results highlight the cooperation between pAgos and their widespread associated proteins, suggesting an uncharted diversity of pAgo-derived immune systems that await to be discovered.