Aortic carboxypeptidase-like protein (ACLP) is a member of a diverse group of proteins that contain a domain with similarity to that of the Dictyostelium discoideum protein discoidin I. The discoidin domain has been identified in mammalian milk fat globule membrane proteins, blood coagulation factors, and receptor tyrosine kinases, where it may facilitate cell aggregation, adhesion, or cell-cell recognition. Here we show that ACLP is a secreted protein that associates with the extracellular matrix (ECM). During mouse embryogenesis, ACLP is abundantly expressed in the ECM of collagen-rich tissues, including the vasculature, dermis, and the developing skeleton. We deleted the ACLP gene in mice by homologous recombination. The majority of ACLP ؊/؊ mice die perinatally due to gastroschisis, a severe disruption of the anterior abdominal wall and herniation of the abdominal organs. ACLP ؊/؊ mice that survived to adulthood developed nonhealing skin wounds. Following injury by a dermal punch biopsy, ACLP ؊/؊ mice exhibited deficient wound healing compared with controls. In addition, dermal fibroblasts isolated from ACLP ؊/؊ 18.5-day-postconception embryos exhibited a reduced proliferative capacity compared with wild-type cells. These results indicate that ACLP is an ECM protein that is essential for embryonic development and dermal wound healing processes.Interactions between cells and the extracellular matrix (ECM) are important in the regulation of basic cellular functions, such as proliferation, differentiation, adhesion, and migration (1, 10). These interactions also govern most physiological and pathological processes, including fetal development, angiogenesis, and wound healing.We have identified a novel protein, aortic carboxypeptidaselike protein (ACLP), that is expressed highly in vascular smooth muscle cells of blood vessels, the expression of which increases with smooth muscle cell differentiation (16). The carboxyl terminus of mouse ACLP is identical to that of a cDNA-encoded protein designated adipocyte enhancer binding protein 1 (AEBP1) and reported to be a DNA-binding transcriptional repressor (6). We demonstrated previously that the AEBP1 cDNA is most likely a partial clone of mouse ACLP lacking 410 N-terminal amino acids (16).ACLP contains a domain with similarity to the slime mold protein discoidin I (2). In addition, ACLP contains a signal peptide at its amino terminus and a region with structural similarity to the pro-hormone-processing metallocarboxypeptidases at its carboxyl terminus (5). This structure of tandem discoidin and carboxypeptidase domains also occurs in two proteins related to ACLP, CPX-1 and CPX-2 (17, 28). Like ACLP, CPX-1 and CPX-2 are missing several amino acid residues required for catalytic activity toward standard carboxypeptidase substrates, leading to the hypothesis that these proteins potentially function as binding proteins rather than active carboxypeptidases (28). An additional protein in this subfamily of metallocarboxypeptidases is CPZ. CPZ does not contain a discoidin d...