Many plants reproduce asexually by generating clonal progeny from vegetative tissues, a process known as vegetative reproduction. This reproduction mode contrasts with sexual reproduction, which enhances genetic diversity. The bryophyte Marchantia polymorpha L. adjusts its reproductive strategy in response to seasonal environmental cues, transitioning between vegetative and sexual reproduction. In this study, we identified a gene encoding the R2R3-MYB transcription factor SHOT GLASS (MpSTG) as a critical regulator of gemma cup development. MpSTG was predominantly expressed in the gemma cup, apical notch, and sexual reproductive organs (gametangiophores). MpSTG mutation resulted in the formation of abnormal shot-glass-shaped structures lacking gemmae, which replaced functional gemma cups. Additionally, MpSTG-disrupted plants failed to develop sexual reproductive organs, even under inductive conditions. In Arabidopsis thaliana, the MpSTG ortholog LATERAL ORGAN FUSION1 (AtLOF1) plays a pivotal role in lateral bud formation. We demonstrated that MpSTG can partially compensate for AtLOF1's function in lateral bud formation in A. thaliana. Our findings suggest that MpSTG is a key regulator of vegetative and sexual reproduction in M. polymorpha, and illustrate that evolutionarily conserved developmental mechanisms may function in both the gametophyte generation of bryophytes and the sporophyte generation of angiosperms.