In Drosophila, the primary determinant of anterior pattern is the gradient morphogen bicoid (bcd), a homeodomain protein that binds DNA and transcriptionally activates target genes at different threshold concentrations. Here we present evidence that bcd also binds RNA and acts as a translational repressor to generate an opposing gradient of the homeodomain protein caudal (cad). RNA binding by bcd seems to involve direct interactions between the bcd homeodomain and discrete target sequences within the 3’ untranslated region of the cad messenger RNA and to block the initiation of cad translation.