Background: PI(4,5)P 2 , mainly synthesized by PIP5KI␥, is essential for normal cell function. Results: Deficiency or overexpression of PIP5KI␥, which results in decrease or increase of PI(4,5)P 2 , respectively, impairs osteoclast differentiation and function. Conclusion: Optimal PIP5KI␥ and PI(4,5)P 2 expression are important for osteoclast function. Significance: This is the first demonstration that PIP5KI␥ regulates cells in a bifunctional manner.