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Sex determination in the nematodeC.elegansis controlled by the master regulator XOL-1 during embryogenesis. Expression ofxol-1is dependent on the ratio of X chromosomes and autosomes, which differs between XX hermaphrodites and XO males. In males,xol-1is highly expressed and in hermaphrodites,xol-1is expressed at very low levels. XOL-1 activity is known to be critical for the proper development ofC.elegansmales, but its low expression was considered to be of minimal importance in the development of hermaphrodite embryos. Our study reveals that XOL-1 plays an important role as a regulator of developmental timing during hermaphrodite embryogenesis. Using a combination of imaging and bioinformatics techniques, we found that hermaphrodite embryos have an accelerated rate of cell division, as well as a more developmentally advanced transcriptional program whenxol-1is lost. Further analyses reveal that XOL-1 is responsible for regulating the timing of initiation of dosage compensation on the X chromosomes, and the appropriate expression of sex-biased transcriptional programs in hermaphrodites. We found thatxol-1mutant embryos overexpress the H3K9 methyltransferase MET-2 and have an altered H3K9me landscape. Some of these effects of the loss ofxol-1gene were reversed by the loss ofmet-2. These findings demonstrate that XOL-1 plays an important role as a developmental regulator in embryos of both sexes, and that MET-2 acts as a downstream effector of XOL-1 activity in hermaphrodites.