Elongation of the digit rays resulting in the formation of a defined number of phalanges is a process poorly understood in mammals, whereas in the chicken distal mesenchymal bone morphogenetic protein (BMP) signaling in the so-called phalanx-forming region (PFR) or digit crescent (DC) seems to be involved. The human brachydactylies (BDs) are inheritable conditions characterized by variable degrees of digit shortening, thus providing an ideal model to analyze the development and elongation of phalanges. We used a mouse model for BDB1 (Ror2 W749X/W749X ) lacking middle phalanges and show that a signaling center corresponding to the chick PFR exists in the mouse, which is diminished in BDB1 mice. This resulted in a strongly impaired elongation of the digit condensations due to reduced chondrogenic commitment of undifferentiated distal mesenchymal cells. We further show that a similar BMP-based mechanism accounts for digit shortening in a mouse model for the closely related condition BDA1 (Ihh E95K/E95K ), altogether indicating the functional significance of the PFR in mammals. Genetic interaction experiments as well as pathway analysis in BDB1 mice suggest that Indian hedgehog and WNT/β-catenin signaling, which we show is inhibited by receptor tyrosine kinase-like orphan receptor 2 (ROR2) in distal limb mesenchyme, are acting upstream of BMP signaling in the PFR. T he appendicular skeleton arises as a continuous cartilaginous condensation in the center of the limb bud that develops in a proximal to distal sequence. Distal outgrowth is under the control of fibroblast growth factor (FGF) signaling from the apical ectodermal ridge (AER), which accounts for proliferation in the subridge mesenchyme and prevents premature differentiation of mesenchymal cells, thus maintaining a progenitor pool. Cells leaving the range of AER-FGF signaling undergo differentiation into the mesenchymal cell lineages of the limb bud (1, 2).Evidence from the chick indicates that bone morphogenetic protein (BMP)/pSMAD1/5/8 signaling in a population of cells in front of the growing condensation, referred to as the phalanxforming region (PFR) or digit crescent (3, 4), is involved in the elongation of the digital rays. This work suggests that the PFR acts as a signaling center to drive distal elongation of the digit and thus determines the number of phalanges via commitment of distal mesenchymal cells to the cartilage condensation. However, evidence for such a mechanism in the mouse or human is missing.If a PFR-like structure exists in mammals, its failure is expected to cause digit malformation phenotypes such as digit shortening and loss of phalanges. This phenotypic spectrum is typical for a family of human inheritable malformations, the brachydactylies (BDs), which are characterized by the absence or reduction of individual phalanges and/or metacarpals (5). Intriguingly, several mutations causing human BDs (BDA2, BDB2, and BDC) affect the BMP pathway (5), which suggests the involvement of a PFRlike structure in digit growth.BD types A1 and B1...