The shoot apical meristem (SAM) is a group of stem cells that are responsible for plant development. Mutations in rice SHOOTLESS2 (SHL2), SHL4/SHOOT ORGANIZATION2 (SHO2), and SHO1 cause complete deletion or abnormal formation of the SAM. In this study we showed that defects in SAM formation in shl mutants are associated with the loss of expression of the homeodomainleucine zipper (HD-ZIPIII) family genes. Rice SHL2, SHL4/SHO2, and SHO1 encoded orthologues of Arabidopsis RNA-dependent RNA polymerase 6, ARGONAUTE (AGO) 7, and DICER-like 4, respectively, whose mutations affect leaf development through the trans-acting siRNA (ta-siRNA) pathway. This suggested that the ta-siRNA pathway regulates the critical step of SAM formation during rice embryogenesis. The gain-of-function experiment by the ectopic expression of SHL4 resulted in reduced accumulation of an microRNA, miR166, and partial adaxialization of leaves, supporting a role for the ta-siRNA pathway in the maintenance of leaf polarity as previously reported in maize. Analysis of the spatiotemporal expression patterns of HD-ZIPIII and miR166 in wild-type and shl mutant embryos suggested that the loss of HD-ZIPIII expression in the SAM region of the developing embryo is the result of ectopic expression of miR166. Our analysis of shl mutants demonstrated that HD-ZIPIII expression regulated by miR166 is sensitive to the ta-siRNA pathway during SAM formation in rice embryogenesis.embryogenesis ͉ shoot apical meristem ͉ shootless ͉ shoot organization I n multicellular organisms, precise control of the spatial and temporal expression of developmental regulatory genes is essential. Recent studies have revealed the existence of a posttranscriptional mechanism of regulation of these genes through small RNAs (1, 2). Among the various types of small RNA molecules, microRNAs (miRNAs) control the expression of developmental regulatory molecules in both plants and animals, and their target sequences are often conserved between species. Recently, it has been shown that repeat-associated siRNAs and trans-acting siRNAs (ta-siRNAs) are also involved in the regulation of development (1, 3-5). However, the downstream developmental and genetic events that are regulated by these small RNAs are poorly understood.The shoot apical meristem (SAM) is a center of morphogenesis in plants and the developmental origin of most of the aboveground parts of the plant, including the leaves, stems, and axillary buds (6). Embryonic SAM formation is the initial process that establishes stem cells, providing an appropriate local environment for the maintenance of the stem cells, and ensures postembryonic development of the shoot architecture. Thus, understanding the mechanism of embryonic SAM formation is a priority issue in the developmental biology in plants, and doing so provides a unique system to study the mechanism of stem cell establishment. In rice, shootless (shl) mutants were originally identified as embryonic mutants that completely lack a SAM (7). In most shl mutants, the scutellum and ra...