Recent studies of RNA regulatory mechanisms revealed that RNA biology is more complicated than previously believed. The RNA silencing pathways form an extra layer of complexity to gene regulation. Broadly, Small ncRNAs including micro-RNAs (miRNAs), small interfering RNAs (siRNAs) and piwi-interacting RNAs (piRNAs) regulate gene expression through a complex formed by the binding of a small RNA to diverse array of Argonaute proteins. Argonautes are at the heart of the effector complex and along with other co-factors can influence gene expression via translation inhibition, mRNA degradation, mRNA storage, or epigenetic changes. In the miRNA context, NHL-2, a member of TRIM-NHL family, has been shown involved in controlling developmental timing and cell fate progression in somatic tissues acting as a co-factor in C. elegans. In this study we aimed to characterize the role of NHL-2 specifically its NHL domain, which is a RNA binding domain, in regulating genes expression through miRNA pathway. In our study, NHL domain of NHL-2 has been mutated in five amino acids and using the transgenic worms carrying extra chromosomal arrays we first confirmed that the NHL-2 localizes in P-bodies and P-bodies show increase in size and number when NHL-2 is mutant in RNA binding domain. Applying Co-Immunoprecipitation, qRT PCR and RNA-seq techniques, we found that mRNA levels including HBL-1 which is let-7 miRNA target were increased. Also, phenotypic analysis of adult cuticle formation shows that RNA binding domain of NHL-2 is essential to regulate the heterochronic pathways through let-7 miRNAs. In conclusion our analysis indicates that RNA binding domain of NHL-2 is important for translational repression of target mRNA in miRNA pathway in C. elegans which can be due to the role of NHL-2 in assisting miRNA to apply mRNA decay machinery.