The in vivo functions of ARF-like members of the Ras superfamily of GTPases are relatively unexplored. Here we describe the analysis of C. elegans evl-20 gene that encodes a functional homolog of human ARL2. Elimination of evl-20 function results in abnormal vulval, gonad, and male tail development and disrupts embryonic proliferation, hypodermal enclosure, and elongation. Loss of evl-20 function causes specific defects in the microtubule cytoskeleton, which is the likely molecular basis for the observed defects. EVL-20 is closely associated with both the cell cortex and astral microtubules, suggesting that it may directly interact with microtubule structures at those locations. Our data indicate that EVL-20 functions in the cytoplasm and at the plasma membrane to regulate cytoskeletal dynamics during cytokinesis and morphogenesis.