A working model for RNA sequence diversity during rice and M. grisea interaction. Once an M. grisea conidium lands on the rice leaf surface, an infectious structure, called appressorium, develops at the tip of the germ tube. The highly melanized appressorium generates enormous turgor pressure and penetrates through the rice epidermal cells within 24 h of inoculation (Talbot, 1995). Through the penetration peg, the fungus may secrete various proteins (Ellis et al., 2005), mobile elements (Vaughn et al., 1995), and even free radicals into host cells. Fungal secretory molecules may interact with host factors leading to the synthesis of sense and antisense transcripts for defense-related genes. Then both sense and antisense transcripts may pair to form dsRNA in the nucleus. dsRNA may be targeted by the RNA-editing complex, including cytidine deaminase and adenine deaminase (Nie et al., 2006). Edited dsRNAs might be retained in the nucleus and degraded, generating miRNAs and siRNAs (Blow et al., 2006). Translation of edited transcripts may lead to production of protein diversity (Li et al., 2006). miRNAs and siRNAs may affect translation, transcription, and DNA replication (Li et al., 2006) in the nucleus. RNA variation in host transcripts could affect the outcome of the rice and M. grisea interaction: host resistance or susceptibility.