The efficient investment of resources is often the route to ecological success, and the adaptability of resource investment may play a critical role in promoting biodiversity. The ants of the "hyperdiverse" genus Pheidole produce two discrete sterile castes, soldiers and minor workers. Within Pheidole, there is tremendous interspecific variation in proportion of soldiers. The causes and correlates of caste ratio variation among species of Pheidole remain enigmatic. Here we test whether a body size threshold model accounts for interspecific variation in caste ratio in Pheidole, such that species with larger body sizes produce relatively fewer soldiers within their colonies. We evaluated the caste ratio of 26 species of Pheidole and found that the body size of workers accounts for interspecific variation in the production of soldiers as we predicted. Twelve species sampled from one forest in Costa Rica yielded the same relationship as found in previously published data from many localities. We conclude that production of soldiers in the most species-rich group of ants is regulated by a body size threshold mechanism, and that the great variation in body size and caste ratio in Pheidole plays a role in niche divergence in this rapidly evolving taxon.