The D-elg gene encodes an ETS domain transcription factor that functions in Drosophila oogenesis. D-elg belongs to a small group of genes that are required for the formation of both the anteroposterior and dorsoventral axes of the egg chamber. During oogenesis in D-elg mutant females, the spatial localization of oskar and gurken mRNAs in the oocyte is disrupted and a follicle cell enhancer trap marker identifies dorsoventral polarity defects. Also, specialized follicle cells, called border cells, fail to migrate from their anterior location to a position adjacent to the developing oocyte. Consistent with these phenotypes, D-elg shows genetic interactions with two genes required for normal egg chamber differentiation.