The formation of the functional mammalian cerebral cortex requires a concerted control of neurogenesis, neuronal migration, and neuronal morphogenesis. However, molecular mechanisms that control these processes are not well understood. We have found that the BMP signaling downstream transcription factor SMAD1 and CRMP2 (collapsin response mediator protein-2) are inversely and complementarily expressed in the developing neocortex. BMPs can suppress CRMP2 expression in cortical cells. Our ChIP assay demonstrates that both SMAD1 and -4 bind to CRMP2 promoter in the neocortex, and overexpression of SMAD1 and 4 in vivo suppresses CRMP2 expression. RNA interference of CRMP2 and overexpression of dominant negative forms of CRMP2 in utero cause accumulation of multipolar cells in the ventricular, subventricular, and intermediate zones and suppresses neurite outgrowth, suggesting that CRMP2 is required for multipolar to bipolar transition for directional neuronal migration and neurite outgrowth. Thus, our study reveals a novel mechanism that the BMP-SMAD signaling pathway controls neuronal migration and neurite outgrowth by suppressing the transcription of CRMP2.During cortical development, neural progenitor cells undergo proliferation, differentiation, migration, and maturation in a distinct and sequential manner. Neurons migrate to different layers of the cortex via special routes to form a functional neural circuitry. The newborn neurons transiently become multipolar with multiple processes within the subventricular zone (SVZ) 3 and lower intermediate zone (IZ), which is also known as the premigratory zone, and then change to bipolar to migrating out of the premigratory zone along radial fibers to the cortical plate (CP), where they further become mature neurons (1-5).The TGF- superfamily members, BMPs, are crucial regulators for the differentiation of ES cells as well as neural progenitor cells during development (6 -9). In the canonical BMP-SMAD signaling pathway, BMP transduces its signal via the intracellular downstream mediators R-SMAD proteins (SMAD1, SMAD5, or SMAD8). The activated R-SMADs can form a complex with the Co-SMAD, SMAD4, to regulate target gene expression through cooperation with other DNA binding factors or transcription factors (6,8). It has been shown that BMP2 and -4 induce neural stem cells to differentiate into a variety of cellular fates (10 -12). However, the exact role of BMP2 and -4 in brain development and the underlying mechanism are poorly understood.CRMP2 (collapsin response mediator protein 2) is one of five CRMP gene family members (CRMP1-5). CRMP2 is essential for axon-dendrite specification, axon outgrowth, and elongation (13,14). CRMP2 has been shown to be able to bind to tubulin heterodimers to promote microtubule assembly (15). It has been proposed that CRMP2 promotes neurite elongation and axon specification by regulating microtubule assembly, endocytosis of adhesion molecules, reorganization of actin filaments, and axonal protein trafficking (14, 16 -18). GSK3 (glycogen synt...