Abstract CRISPR-Cas systems have been developed as important tools for plant genome engineering. Here, we demonstrate that the hypercompact CasΦ nuclease is able to generate stably inherited gene edits in Arabidopsis , and that CasΦ guide RNAs can be expressed with either the Pol-III U6 promoter or a Pol-II promoter together with ribozyme mediated RNA processing. Using the Arabidopsis fwa epiallele we show that CasΦ displays higher editing efficiency when the target locus is not DNA methylated, suggesting that CasΦ is sensitive to chromatin environment. Importantly, two CasΦ protein variants, vCasΦ and nCasΦ, both showed much higher editing efficiency relative to the wildtype CasΦ enzyme, and yielded more offspring plants with inherited edits. Extensive genomic analysis of gene edited plants showed no off-target editing, suggesting that CasΦ is highly specific. The hypercompact size, T-rich minimal PAM and wide range of working temperatures make CasΦ an excellent supplement to existing plant genome editing systems. Significance Statement Plant genome engineering with CRISPR-Cas systems is frequently used in both research and agriculture. Here, we demonstrate that the hypercompact CasΦ-2 nuclease is able to generate heritable gene edits in Arabidopsis . Two CasΦ protein variants vCasΦ and nCasΦ increased the editing efficiency in plants. CasΦ also has a wide range of working temperatures and the editing by CasΦ is highly specific. We also observed that editing by CasΦ is sensitive to chromatin environment. The hypercompact size, T-rich minimal PAM and wide range of working temperatures make CasΦ an excellent supplement to existing plant genome editing systems.