Many mammalian viruses have acquired genes from their hosts during their ev
olution(1). The rationale for these acquisitions is usually quite clear: th
e captured genes are subverted to provide a selective advantage to the viru
s. Here we describe the opposite situation, where a viral gene has been seq
uestered to serve an important function in the physiology of a mammalian ho
st. This gene, encoding a protein that we have called syncytin, is the enve
lope gene of a recently identified human endogenous defective retrovirus, H
ERV-W-2. We find that the major sites of syncytin expression are placental
syncytiotrophoblasts, multinucleated cells that originate from fetal tropho
blasts. We show that expression of recombinant syncytin in a wide variety o
f cell types induces the formation of giant syncytia, and that fusion of a
human trophoblastic cell line expressing endogenous syncytin can be inhibit
ed by an anti-syncytin antiserum. Our data indicate that syncytin may media
te placental cytotrophoblast fusion in vivo, and thus may be important in h
uman placental morphogenesis.