Lysine methylation of chromosomal and nuclear proteins is a well-known mechanism of epigenetic regulation, but relatively little is known about the role of this protein modification in signal transduction. Using an RNAi-based functional screening of the SMYD family of lysine methyltransferases (KMTs), we identified SMYD2 as a KMT essential for robust bone morphogenic protein (BMP)-but not TGFβ-induced target gene expression in HaCaT keratinocyte cells. A role for SMYD2 in BMP-induced gene expression was confirmed by shRNA knockdown and CRISPR/Cas9-mediated knockout of SMYD2. We further demonstrate that SMYD2 knockdown or knockout impairs BMPinduced phosphorylation of the signaltransducing protein SMAD1/5 and SMAD1/5 nuclear localization and interaction with SMAD4. The SMYD2 KMT activity was required to facilitate BMP-mediated signal transduction, as treatment with the SMYD2 inhibitor AZ505 suppressed BMP2-induced SMAD1/5 phosphorylation. Furthermore, we present evidence that SMYD2 likely modulates the BMP response through its function in the cytosol. We show that, although SMYD2 interacted with multiple components in the BMP pathway, it specifically methylated the kinase domain of BMP type II receptor BMPR2. Taken together, our findings suggest that SMYD2 may promote BMP signaling by directly methylating BMPR2, which, in turn, stimulates BMPR2 kinase activity and activation of the BMP pathway.Lysine methylation has been extensively studied in the context of histone proteins as a mechanism of epigenetic regulation (1-3). With the presence of large number of lysine methyltransferases (KMTs) in mammalian genomes (4,5), it is not surprising that an increasingly larger number of non-histone chromosomal, nuclear and cytoplasmic proteins have been found to be lysine methylated (6-9). Lysine methylation can be dynamically removed by the action of demethylases (10,11), making it a feasible mechanism for signal transduction. However, up to now lysine methylation has been shown to regulate signaling proteins only in a limited cases. For instances, methylation of MAP3K2 by SMYD3 has been shown to increase MAP kinase signaling and promotes the formation of Ras-driven carcinomas (12), whereas methylation of VEGFR1 by SMYD3 activates its kinase activity (13), indicating that lysine methylation can play important roles in regulation of signal transduction.TGF-β/BMP superfamily of cytokines play pleiotropic roles in embryonic development, differentiation, organ morphogenesis and tissue homeostasis (14,15). These cytokines bind the cell surface type I and type II receptors that are also serine-threonine kinases (16,17). Upon ligand binding, the type II receptor activates the type I receptor by phosphorylating the GS motif of type I receptor (18). The activated type I receptor in turn phosphorylates regulatory SMADs (R-SMADs) at the C-terminal SSXS motif. This phosphorylation disrupts inhibitory intramolecular interaction between MH2 and MH1 domains of R-SMADs and stimulates R-SMADs to form a heteromeric complex with the C...