Many microbial genome sequences have been determined, and more new genome projects are ongoing. Shotgun sequencing of randomly cloned short pieces of genomic DNA can provide a simple way of determining whole genome sequences. This process requires sequencing of many fragments, compilation of the separate sequences into one contiguous sequence, and careful editing of the assembled sequence. The genes present on the microbial genome are then predicted using clues derived from typical gene features, such as codon usage, ribosomal binding sequences, and bacterial initiation codons. Function of genes is predicted by homology searches performed against either public or well-established protein databases. This chapter discusses each of these stages in a genome-sequencing project.