Cartilaginous fishes are the oldest living phylogenetic group of jawed vertebrates. Here, we demonstrate the value of cartilaginous fish sequences in reconstructing the evolutionary history of vertebrate genomes by sequencing the protocadherin cluster in the relatively small genome (910 Mb) of the elephant shark (Callorhinchus milii). Human and coelacanth contain a single protocadherin cluster with 53 and 49 genes, respectively, that are organized in three subclusters, Pcdh␣, Pcdh, and Pcdh␥, whereas the duplicated protocadherin clusters in fugu and zebrafish contain >77 and 107 genes, respectively, that are organized in Pcdh␣ and Pcdh␥ subclusters. By contrast, the elephant shark contains a single protocadherin cluster with 47 genes organized in four subclusters (Pcdh␦, Pcdh, Pcdh, and Pcdh). By comparison with elephant shark sequences, we discovered a Pcdh␦ subcluster in teleost fishes, coelacanth, Xenopus, and chicken. Our results suggest that the protocadherin cluster in the ancestral jawed vertebrate contained more subclusters than modern vertebrates, and the evolution of the protocadherin cluster is characterized by lineagespecific differential loss of entire subclusters of genes. In contrast to teleost fish and mammalian protocadherin genes that have undergone gene conversion events, elephant shark protocadherin genes have experienced very little gene conversion. The syntenic block of genes in the elephant shark protocadherin locus is well conserved in human but disrupted in fugu. Thus, the elephant shark genome appears to be less prone to rearrangements compared with teleost fish genomes. The small and ''stable'' genome of the elephant shark is a valuable reference for understanding the evolution of vertebrate genomes.ancestral jawed vertebrate ͉ clustered protocadherins ͉ cartilaginous fish ͉ Callorhinchus milii ͉ gene conversion R econstructing the evolutionary history of vertebrate genomes, and in particular the human genome, is a major goal of vertebrate comparative genomics. Efforts are underway to reconstruct the evolutionary history of the human genome at the nucleotide level and at the level of large-scale chromosomal rearrangements (1) with the objective of predicting ancestral genomes with high accuracy. The accuracy of the reconstruction of ancestral genomes is greatly influenced by the choice and number of genomes compared. Although a comparison of genomes from all major vertebrate groups is desirable, it is also important to compare genomes from the most distant branches of the phylogenetic tree. Here, we show how the genome sequence from the oldest living phylogenetic group of jawed vertebrates, the cartilaginous fishes, can dramatically change our inferences of the state of the ancestral vertebrate genome.The protocadherin gene cluster is one of the most evolutionarily dynamic loci in vertebrates. It is composed of tandem arrays of paralogous genes that are highly susceptible to lineage-specific gene losses, tandem duplications, and gene conversion (2-7). These clustered genes are distinc...