Short RNA regulatory molecules, microRNAs, and short interfering RNAs participate in a range of developmental gene networks by base-pairing with their target sequences. Consistent with these findings, genes required for the biogenesis and function of short interfering RNAs and microRNAs, dicer (dcr-1 in Caenorhabditis elegans) and argonaute homologs, are essential for development in diverse organisms, including C. elegans. We demonstrate that genes required for the function of short RNAs synergize with the retinoblastoma tumor suppressor homolog lin-35 in negative regulation of the nuclear divisions in the intestine of C. elegans. The level of cyclin E (cye-1) expression is critical for nuclear divisions in the intestine and is elevated in double mutants in lin-35 and RNA interference pathway genes. We propose that RNA interferencerelated pathways cooperate with retinoblastoma in transcriptional repression of endogenous genes, an example being cyclin E.cyclin E R NA interference (RNAi) was originally discovered in Caenorhabditis elegans as a mechanism of posttranscriptional gene silencing induced by exogenous dsRNA (1). It is now known that RNAi-related mechanisms play roles in inhibition of target mRNA translation (2), mRNA degradation (3), or repression of transcription (4). Processing of dsRNA in the first step of RNAi and processing of all C. elegans microRNA (miRNA) precursors requires dcr-1 (5-7). Dcr-1 is accompanied by different Argonaute proteins, Rde-1 and Alg-1͞2, in the RNAi and miRNA pathways, respectively (6,8). Surprisingly, both RNAi and miRNA pathway genes affect RNAi-induced transcriptional gene silencing (RNAi-TGS) in the soma of C. elegans (9).A majority of human cancers have a mutation inactivating the retinoblastoma (Rb) pathway (10, 11). Three Rb-related genes are expressed in vertebrate cells, but only one member of this family exists in C. elegans (12). In both types of organisms Rb-related activities are thought to control cell proliferation and development primarily by suppressing transcription at promoters near their binding sites. The specificity of Rb proteins is mediated by their association with the E2F family of DNA-binding proteins, which heterodimerize with the DP protein (13). Proteins associated with the Rb protein can inhibit transcription by modifications of chromatin. Specifically, Rb complexes are associated with histone deacetylases and chromatin remodeling proteins (13,14). Further, in differentiating cells, some Rbcontaining complexes are associated with histone methyltransferase Suv39h, which catalyzes H3 lysine 9 (H3-K9) methylation, promoting heterochromatin formation (15, 16).RNAi-mediated gene silencing can also function through repressive chromatin modifications in some organisms (4, 17). In fission yeast, short interfering RNAs pair in a complex of proteins with nascent transcripts to direct modifications of chromatin (18). Similar processes are thought to be active in plants (17). In C. elegans, RNAi-induced transcriptional transgene silencing has been observed...