The widespread presence of antibiotic resistance and virulence among Staphylococcus isolates has been attributed in part to lateral genetic transfer (LGT), but little is known about the broader extent of LGT within this genus. Here we report the first systematic study of the modularity of genetic transfer among 13 Staphylococcus genomes covering four distinct named species. Using a topology-based phylogenetic approach, we found, among 1,354 sets of homologous genes examined, strong evidence of LGT in 368 (27.1%) gene sets, and weaker evidence in another 259 (19.1%). Within-gene and whole-gene transfer contribute almost equally to the topological discordance of these gene sets against a reference phylogeny. Comparing genetic transfer in single-copy and in multicopy gene sets, we observed a higher frequency of LGT in the latter, and a substantial functional bias in cases of whole-gene transfer (little such bias was observed in cases of fragmentary genetic transfer). We found evidence that lateral transfer, particularly of entire genes, impacts not only functions related to antibiotic, drug, and heavy-metal resistance, as well as membrane transport, but also core informational and metabolic functions not associated with mobile elements. Although patterns of sequence similarity support the cohesion of recognized species, LGT within S. aureus appears frequently to disrupt clonal complexes. Our results demonstrate that LGT and gene duplication play important parts in functional innovation in staphylococcal genomes.Staphylococci are nonmotile but invasive Gram-positive bacteria that are associated with various pus-forming diseases in humans and other animals. The most prominent pathogenic species in the genus is Staphylococcus aureus, of which various strains colonize the nasal passages and skin in humans, causing illnesses that range from minor skin lesions or infections to life-threatening diseases, e.g., meningitis, septicemia (bacteremia), and toxic shock syndrome (55,67,94). The other species of Staphylococcus, although lacking genes that encode virulence factors and toxins, are opportunistic pathogens for immunocompromised patients (2, 74, 82).One of the major problems in the prognosis of staphylococcal infections is the progressive development of resistance in the Staphylococcus species to multiple antibiotics (14), e.g., methicillin (36, 102) and vancomycin (23, 84), which has, as in other pathogenic bacteria, been attributed to the susceptibility of the organisms to genetic transfer (22, 83). Lateral genetic transfer (LGT) occurs when the organisms acquire exogenous genetic material that encodes antibiotic resistance (6, 105), and this material becomes established in the lineage, whether by recombination into the genome or, potentially less stably, on an extrachromosomal genetic element (31, 86). In Staphylococcus, transfer of genetic material has been shown to be mediated by phage transduction and conjugative transfer (19,62,79).Although a number of studies have examined the frequency of LGT in prokaryotes us...