The paper reviewed recent progress on the study of mechanisims of RNA interference and gene function. RNA interference is a posttranscriptional gene silencing mechanism that dsRNA specifically suppresses the expression of a gene with a corresponding sequences. It degrades mRNA specifically and potently through the mediation of corresponding doublestranded RNA and leads to posttranscriptional gene silencing. Consequently RNA interference is observed in eukaryotic organisms including fungi, plants and animals. RNA interference plays important roles in resistance to virus invasion and inhibition of transportable elements. It also provides a vital tool in the study of gene function activity.