Filamentous fungi form multicellular hyphae that are partitioned by septa. In A. nidulans, septum formation requires the assembly of a septal band following the completion of mitosis. Recent observations show that this band is a dynamic structure composed of actin, a septin and a formin. In addition, assembly is dependent upon a conserved protein kinase cascade that regulates mitotic exit and septation in yeast. Hyphal differentiation may reflect the regulation of this cascade by cyclin-dependent kinase activity. In this review, the dynamics and regulation underlying the assembly of the septal band are discussed.