Polycomb group proteins (PcGs) are involved in gene repression through chromatin modifications and required for the maintenance of both embryonic and adult stem cells. Genome-wide studies demonstrate that genes targeted by PcG are predominantly developmental transcription factors. In embryonic stem cells, these genes carry not only a repressive PcG mark but also an activating mark, resulting in so-called 'bivalent domains'. New data suggest that genes with bivalent domains are primed for differential expression upon differentiation. We propose that the resolution of a bivalent domain into either an active or repressed state constitutes a cell fate decision, and that by postponing these decisions PcG contributes to pluripotency.