The monophyletic group of hornworts is believed to represent the immediate sister group of all vascular land plants. However, this traditional view is still debated and cannot be satisfactorily resolved owing to the lack of detailed knowledge on the general biology and genomic features of hornworts. Until now, advancement in this field was primarily hindered by the lack of genomic resources for a hornwort model species. Here we provide the first insight into the major features of the draft genome sequence of the model hornwort, Anthoceros agrestis. We show that A. agrestis has a remarkably small genome, with few recent paralogues, which makes it appropriate for genetic analysis. Finally, we also report on the genomic features of the chloroplast, mitochondrion and nuclear genomes and compare those with algal and vascular land plant genomes. At the very end of the chapter we summarize our achievements and provide a list of issues that need to be resolved in the future.