For an $n \times n$ matrix $A$, let $q(A)$ be the number of distinct eigenvalues of $A$. If $G$ is a connected graph on $n$ vertices, let $\mathcal{S}(G)$ be the set of all real symmetric $n \times n$ matrices $A=[a_{ij}]$ such that for $i\neq j$, $a_{ij}=0$ if and only if $\{i,j\}$ is not an edge of $G$. Let $q(G)={\rm min}\{q(A)\,:\,A \in \mathcal{S}(G)\}$. Studying $q(G)$ has become a fundamental sub-problem of the inverse eigenvalue problem for graphs, and characterizing the case for which $q(G)=2$ has been especially difficult. This paper considers the problem of determining the regular graphs $G$ that satisfy $q(G)=2$. The resolution is straightforward if the degree of regularity is $1, 2,$ or $3$. However, the $4$-regular graphs with $q(G)=2$ are much more difficult to characterize. A connected $4$-regular graph has $q(G)=2$ if and only if either $G$ belongs to a specific infinite class of graphs, or else $G$ is one of fifteen $4$-regular graphs whose number of vertices ranges from $5$ to $16$. This technical result gives rise to several intriguing questions.