We introduce a stochastic grammatical channel model for machine translation, that synthesizes several desirable characteristics of both statistical and grammatical machine translation. As with the pure statistical translation model described by Wu (1996) (in which a bracketing transduction grammar models the channel), alternative hypotheses compete probabilistically, exhaustive search of the translation hypothesis space can be performed in polynomial time, and robustness heuristics arise naturally from a language-independent inversiontransduction model. .