Chromosome engineering is the term given to procedures which modify the long range structure of a chromosome by homologous and site specific recombination or by telomere directed chromosome breakage. DT40 cells are uniquely powerful for chromosome engineering because mammalian chromosomes may be moved into them, efficiently modified and then moved back into a mammalian cell lines (Dieken et al., 1996). The high rate of sequence targeting seen in DT40 cells carrying human chromosomes is necessary but not sufficient for chromosome engineering. The ability to either delete or introduce long tracts of DNA subsequent to a sequence targeting reaction depends upon the use of site specific recombinases. We have made important progress in the development of this technology in the past few years and much of this review will be used to describe this work.