Terminal cell differentiation is usually associated with cell cycle exit. In some lineages, however, cells undergo continued rounds of DNA synthesis without intervening mitoses (endoreduplication) resulting in polyploid nuclei. This is striking in rodent trophoblast giant cells which contain up to 1000N of DNA. In Drosophila, the Escargot gene has been implicated in regulating the transition from mitotic cell cycles to endocycles during development. We found that a murine homologue, mSna, was expressed in mouse trophoblast and was downregulated during giant cell differentiation. The mSNA zinc finger protein bound to E-box DNA elements and, in transfected C3H10T1/2 fibroblasts, acted as a transcriptional repressor. The maximal repressive effect was dependent on both the zinc finger DNA-binding domain and the N-terminal, seven-amino-acid SNAG domain. Misexpression experiments in Rcho-1 trophoblast cells revealed that mSna regulates the transition from replicating precursor cells to committed giant cells: overexpression blocked, whereas antisense RNA-mediated underexpression promoted trophoblast giant cell differentiation. Overexpression of mSna in precursor cells had no effect on cell cycle kinetics, but did increase cyclin A and B levels, implying actions during G2. These effects were dependent on both the zinc finger and SNAG domains. Together, these data suggest that mSNA has an ESCARGOT-like function to repress the transcription of genes that promote the transition from mitotic to endoreduplicative cell cycles in rodent trophoblast.