Proliferation of the neural/neuronal progenitor cells (NPCs) at the ventricular zone of the dorsal spinal cord requires the stimuli of Wnt and bone morphogenic protein (BMP). However, how these two signaling pathways are regulated to initiate differentiation in the NPCs as they enter the intermediate zone is not known. Here, we show that Smad6, a negative regulator of BMP signaling, is expressed in the intermediate zone of the chick dorsal spinal cord. Knockdown experiments show that Smad6 is required for promoting NPCs to exit the cell cycle and differentiate into neurons. Although we find that Smad6 inhibits BMP signaling, as expected, we also find that Smad6 unexpectedly inhibits the Wnt/β-catenin pathway. The inhibition of the Wnt/β-catenin pathway by Smad6 is independent of its effect on the BMP pathway. Rather, Smad6 through its N-terminal domain and link region enhances the interaction of C-terminal binding protein with the β-catenin/T cell factor (TCF) complex and the TCF-binding element to inhibit β-cateninmediated transcriptional activation. Our study provides evidence that transition of NPCs from a proliferative state to a differentiating state is controlled by the dual inhibitory role of Smad6 to both BMP and Wnt signaling at the level of transcription.intermediate zone | neurogenesis P recise spatial and temporal regulation of neural development is essential for generating the complex central nervous system (CNS) found in adult organisms (1, 2). In early neural development, neural progenitor cells are seemingly homogeneous (3, 4); as neurogenesis proceeds, cells acquire different developmental potentials and become located in different tissue compartments or zones (5). At midneurogenesis, the developing cerebral cortex is composed of the ventricular zone (VZ), subventricular zone (SVZ), intermediate zone (IZ), cortical plate (CP), and marginal zone (6). Cells located in the VZ are proliferative neural progenitor cells (7). These cells progressively initiate the expression of proneural genes, such as mouse achaete-scute complex homolog 1 (Mash1) and neurogenins in response to region-specific neurogenic signals (8-10). Proneural genes drive neural progenitor cells to become intermediate neuronal progenitor cells, and these cells migrate out from the VZ and localize to the SVZ (11, 12). Subsequently, neuronal progenitor cells exit the cell cycle, differentiate into nascent neurons in the IZ, and then migrate to the CP (11). It is generally accepted that in the developing spinal cord proliferative neural/ neuronal progenitor cells (NPCs) in the VZ produce postmitotic neurons that migrate directly into the mantle zone (MZ). However, in the developing chick spinal cord, a transition region similar to the IZ has been described between the VZ and MZ marked by expression of the neurogenic differentiation 4 (NeuroM) transcription factor at midneurogenesis (13). It is not clear whether other genes also are expressed in a similar pattern and are potentially involved in the transition between NPC proliferation a...