In order to better understand the developmental processes that govern the formation of somatic embryos in oil palm (Elaeis guineensis Jacq.), we investigated the transcription factor genes expressed during embryogenesis in this species. The AP2/EREBP transcription factor family includes the AP2 subgroup, which contains several proteins that play important roles in plant development. We identified and characterized EgAP2-1, which codes for a protein that contains two AP2 domains similar to those of the transcription factor BABYBOOM (BBM) and more generally AINTEGUMENTA-like (AIL) proteins of the AP2 subgroup. In a similar way to related genes from eudicots, ectopic expression of EgAP2-1 in transgenic Arabidopsis plants alters leaf morphology and enhances regeneration capacity. In oil palm, EgAP2-1 transcripts accumulate to the greatest extent in zygotic embryos. This expression pattern was investigated in more detail by in-situ hybridization, revealing that in both zygotic and somatic embryos, EgAP2-1 expression is concentrated in proliferating tissues associated with the early development of leaf primordia, root initials and provascular tissues.