RNAi has shown great potential for use as a tool for biological discovery, analysis and therapeutics. The involvement of the RNAi pathway in post-transcription silencing, transcriptional silencing and epigenetic silencing as well as its use as a tool for forward genetics and therapeutics throws up several bioinformatics challenges. This paper delineates several areas of research and reviews work that has already been done, the tools that are available and the challenges that lie ahead.