The 8;21 translocation is a major contributor to acute myeloid leukemia (AML) of the M2 classification occurring in approximately 40% of these cases. Multiple mouse models using this fusion protein demonstrate that AML1-ETO requires secondary mutagenic events to promote leukemogenesis. Here, we show that the negative cell cycle regulator p21 WAF1 gene is up-regulated by AML1-ETO at the protein, RNA, and promoter levels. Retroviral transduction and hematopoietic cell transplantation experiments with p21 WAF1 -deficient cells show that AML1-ETO is able to promote leukemogenesis in the absence of p21 WAF1 . Thus, loss of p21 WAF1 facilitates AML1-ETO-induced leukemogenesis, suggesting that mutagenic events in the p21 WAF1 pathway to bypass the growth inhibitory effect from AML1-ETO-induced p21 WAF1 expression can be a significant factor in AML1-ETO-associated acute myeloid leukemia. (RUNX1) is a member of the Runt family of transcription factors that heterodimerize with CBF to form a stable DNAbinding complex. 1,2 AML1 is also the major gene involved in chromosomal translocations in leukemia, 3,4 seen translocated in both lymphoid and myeloid leukemia, such as t(8;21) (AML1-ETO), 5 t(3;21) (AML1-Evi1), 6 t(12;21) (TEL-AML1), 7 t(16;21) (AML1-MTG16), 8 t(12;21) (AML1-copine VIII), 9 t(X;21) (AML1-Fog2), 10 and t(7;21) (AML1-USP42). 11 Specifically the AML1-ETO-associated translocation is observed in approximately 40% of cases of acute myeloid leukemia of the M2 classification (AML-M2), while present in approximately 12% of AMLs. This translocation protein contains the N-terminal portion of AML1 up to its Runt homology DNA-binding domain fused to most of the ETO (MTG8) protein. 12 The ETO gene is one of the family of ETO/MTG repressor proteins that have homology to the Drosophila Nervy repressor proteins. 13,14 Nonconditional AML1-ETO knock-in mice 15,16 are similar to AML1-deficient mice 17,18 in embryonic lethality and in displaying a block in embryonic definitive hematopoiesis, suggestive of a dominant-negative function. Furthermore, directed controlled expression of AML1-ETO in mice demonstrated that AML1-ETO does not promote leukemia under these circumstances. [19][20][21][22] However, following the treatment of AML1-ETO-expressing mice with a DNA-alkylating agent, the mice developed AML. 20,21 Furthermore, various retroviral transduction models have shown again that it does not promote AML. 23,24 These studies suggest that AML1-ETO requires secondary mutagenic events to promote development of AML. Indeed, AML1-ETO promotes AML when combined with the loss of the ICSBP gene, overexpression of WT1, the Flt3-activating mutation, or cotransduction with another translocation fusion protein TEL-PDGFR. [24][25][26][27] The biologic characterization of AML1-ETO in various cell lines has shown that it has both positive and negative effects on leukemia development. Its positive influence comes from its ability to block differentiation and to expand hematopoietic stem cells 23,24,[28][29][30][31][32] ; however, its negat...