Generation of distinct cortical projection neuron subtypes during development relies in part on repression of alternative neuron identities. It was reported that the special AT-rich sequencebinding protein 2 (Satb2) is required for proper development of callosal neuron identity and represses expression of genes that are essential for subcerebral axon development. Surprisingly, Satb2 has recently been shown to be necessary for subcerebral axon development. Here, we unravel a previously unidentified mechanism underlying this paradox. We show that SATB2 directly activates transcription of forebrain embryonic zinc finger 2 (Fezf2) and SRY-box 5 (Sox5), genes essential for subcerebral neuron development. We find that the mutual regulation between Satb2 and Fezf2 enables Satb2 to promote subcerebral neuron identity in layer 5 neurons, and to repress subcerebral characters in callosal neurons. Thus, Satb2 promotes the development of callosal and subcerebral neurons in a cell context-dependent manner.Satb2 | Fezf2 | subcerebral neurons | cerebral cortex | cell fate P rojection neurons in the six-layered neocortex can be classified based on axonal projections. The corticocortical neurons send axons to other areas in the ipsilateral cortex or through the corpus callosum and into the contralateral cortex (i.e., callosal projection neurons). The callosal neurons are distributed throughout layers 2-6, but are most abundant in layers 2 and 3. The corticofugal neurons consist of corticothalamic and subcerebral neurons. The corticothalamic neurons are most abundant in layer 6, and send axons into the thalamus. The subcerebral neurons are located in layer 5, and project axons into the spinal cord, superior colliculus, pons, and other brain areas (1-4).