The piRNA pathway is an adaptive mechanism that maintains genome stability by repression of selfish genomic elements. In the male germline of
Drosophila melanogaster
repression of
Stellate
genes by piRNAs generated from
Supressor of Stellate
(
Su(Ste)
) locus is required for male fertility, but both
Su(Ste)
piRNAs and their targets are absent in other
Drosophila
species. We found that
D. melanogaster
genome contains multiple X-linked non-coding genomic repeats that have sequence similarity to the protein-coding host gene
vasa
. In the male germline, these
vasa
-related
AT-chX
repeats produce abundant piRNAs that are antisense to
vasa
; however,
vasa
mRNA escapes silencing due to imperfect complementarity to
AT-chX
piRNAs. Unexpectedly, we discovered
AT-chX
piRNAs target
vasa
of
Drosophila mauritiana
in the testes of interspecies hybrids. In the majority of hybrid flies, the testes were strongly reduced in size and germline content. A minority of hybrids maintained wild-type array of premeiotic germ cells in the testes, but in them harmful
Stellate
genes were derepressed due to the absence of
Su(Ste)
piRNAs, and meiotic failures were observed. Thus, the piRNA pathway contributes to reproductive isolation between
D. melanogaster
and closely related species, causing hybrid male sterility via misregulation of two different host protein factors.