Mice deficient in the Msx2 gene manifest defects in skull ossification and a marked reduction in bone formation associated with decreases in osteoblast numbers, thus suggesting that Msx2 is involved in bone formation. However, the precise role of Msx2 during osteoblast differentiation is not fully understood. In the present study, we investigated the role of Msx2 in the regulation of osteoblast differentiation in the multipotent mesenchymal cell lines C3H10T1/2 and C2C12 and in murine primary osteoblasts. Introduction of Msx2 induced alkaline phosphatase activity in C3H10T1/2 and C2C12 cells and promoted the calcification of murine primary osteoblasts. This effect of Msx2 was also ob- Differentiation and function of osteoblasts, which play an essential role in bone formation, are regulated by various hormones and cytokines, such as bone morphogenetic proteins (BMPs), 1 fibroblast growth factors, and the Wnt family (1, 2).These factors conduct the transcriptional events that are necessary for the differentiation process of osteoblasts. Runx2/ Cbfa1, an essential transcription factor for bone formation (1, 3), promotes the differentiation of undifferentiated mesenchymal cells into osteoblasts by regulating the transcription of type I collagen, osteopontin, and osteocalcin (4). A more recent study has shown that a zing finger transcription factor, Osterix, is necessary for bone formation and osteoblast differentiation (5). However, the molecular events that regulate the process of osteoblast differentiation have not been fully clarified.Msx2, a homeobox gene, is a mammalian homologue of the Drosophila muscle segment homeobox. Msx2 is known to be induced by BMPs, which play critical roles in bone formation and osteoblast differentiation (2). Msx2-deficient mice develop reduced bone formation, decreases in osteoblasts, impaired chondrogenesis, abnormal calvarial development, and defects in the ectodermal organs including the teeth, hair, and mammary glands (6). In contrast, transgenic mice overexpressing Msx2 show enhanced growth of calvariae (7). Mutations in the MSX2 gene in humans, which affects DNA binding activity, causes defects in skull ossification (8,9). Furthermore an autosomal dominant disorder, Boston-type craniosynostosis, results from a gain-of-function mutation of MSX2 at proline 148 (10, 11). These findings suggest a positive role for Msx2 in bone development and formation. In contrast to these genetic studies, in vitro studies have shown that Msx2 negatively regulates the transcription of the osteoblast-specific genes such as osteocalcin (12, 13). Furthermore Msx2 has been shown to bind to Runx2 and inhibit its transcriptional activity (14). These studies provide the notion that Msx2 serves as a negative regulator for osteoblast differentiation.To understand the complex role of Msx2 in osteoblast differentiation, we examined the effects of Msx2 on osteoblast differentiation of mesenchymal cells. We found that Msx2 promotes the differentiation of mesenchymal cells into the osteoblast lineage in a Runx...