The function of the hepatitis B e antigen (HBeAg) is largely unknown because it is not required for viral assembly, replication, or infection. In this report we chronicle clinical and experimental studies in an attempt to understand the role of HBeAg in natural infection. H epatitis B virus (HBV) infects more than 300 million people and is a major cause of acute and chronic liver disease in the world. HBV infection has been linked unequivocally to the development of hepatocellular carcinoma. Since the discovery of HBV nearly 3 decades ago, great strides have been made not only in characterizing the molecular biology and immunology of HBV infection, but also in defining the mechanisms of pathogenesis in hepatitis B. However, a few areas of HBV remain highly controversial and/or largely undefined. The biologic function of hepatitis B e antigen (HBeAg) has been such an area of intense research. HBeAg is an accessory protein of HBV, not required for viral replication but important for natural infection in vivo. In this report, we discuss the current state of knowledge and highlight the recent advances in understanding this intriguing gene product, mostly in the context of natural HBV infection and its associated disease.