Previous studies showed that nucleolar protein 66 (NO66), the Jumonji C-domain-containing histone demethylase for methylated histone H3K4 and H3K36 (H3K36me), negatively regulates osteoblast differentiation in vitro by inhibiting the activity of transcription factor osterix (Osx). However, whether NO66 affects mammalian skeletogenesis in vivo is not yet known. Here, we generated transgenic (TG) mice overexpressing a flag-tagged NO66 transgene driven by the Prx1 (paired related homeobox 1) promoter. We found that NO66 overexpression in Prx1-expressing mesenchymal cells inhibited skeletal growth and bone formation. The inhibitory phenotype was associated with >50% decreases in chondrocyte/osteoblast proliferation and differentiation. Moreover, we found that in bones of NO66-TG mice, expression of Igf1, Igf1 receptor (Igf1r), runt-related transcription factor 2, and Osx was significantly down-regulated (P < 0.05). Consistent with these results, we observed >50% reduction in levels of phosphorylated protein kinase B (Akt) and H3K36me3 in bones of NO66-TG mice, suggesting an inverse correlation between NO66 histone demethylase and the activity of IGF1R/Akt signaling. This correlation was further confirmed by in vitro assays of C2C12 cells with NO66 overexpression. We propose that the decrease in the IGF1R/Akt signaling pathway in mice with mesenchymal overexpression of NO66 may contribute in part to the inhibition of skeletal growth and bone formation.-Chen, Q., Zhang, L., de Crombrugghe, B., Krahe, R. Mesenchyme-specific overexpression of nucleolar protein 66 in mice inhibits skeletal growth and bone formation. FASEB J. 29, 2555-2565 (2015). www.fasebj.org Key Words: histone demethylase • transgenic mice • IGF1R/Akt signaling pathway • osterix THE MAJORITY OF THE MAMMALIAN skeleton is composed of 2 types of tissues: cartilage and bone. Cartilage is made by chondrocytes that are required for the longitudinal growth of bones. Bone forms through 2 distinct processes: intramembranous and endochondral ossification. In intramembranous ossification, bones form directly from the differentiation of mesenchymal progenitor cells, which then differentiate into cells of osteoblast lineage including preosteoblasts, osteoblasts, and osteocytes. However, in endochondral ossification, osteochondroprogenitors, which derive from mesenchymal progenitors, segregate into either chondrocytes that form a cartilage template or osteoblast precursors, which differentiate to form bone tissue that replaces the cartilage template. The progression through mesenchymal condensation, chondrocyte differentiation, and osteogenic-lineage commitment involves 3 key transcription factors: SRY-related HMG-box 9 (Sox9), runt-related transcription factor 2 (Runx2), and osterix (Osx). During endochondral ossification, Sox9 is required for mesenchymal progenitor condensation and expression of type II collagen (Col2) a1 (1-3). Runx2 has a dual role in the regulation of osteogenic-lineage commitment and the differentiation of mature chondrocytes (4-8). R...