In this study, a sporulation-specific gene (tentatively named ) involved in mother cell lysis in was characterized. The encoded CwlC protein consists of an N-terminal -acetylmuramoyl-l-alanine amidase (MurAc-LAA) domain and a C-terminal amidase02 domain. The recombinant histidine-tagged CwlC proteins purified from were able to directly bind to and digest the cell wall. The CwlC point mutations at the two conserved glutamic acid residues (Glu-24 and Glu-140) shown to be critical for the catalytic activity in homologous amidases resulted in a complete loss of cell wall lytic activity, suggesting that CwlC is an -acetylmuramoyl-l-alanine amidase. Results of transcriptional analyses indicated that is transcribed as a monocistronic unit and that its expression is dependent on sporulation sigma factor K (σ). Deletion of completely blocked mother cell lysis during sporulation without impacting the sporulation frequency, Cry1Ac protein production, and insecticidal activity. Taken together, our data suggest that CwlC is an essential cell wall hydrolase for mother cell lysis during sporulation. Engineered strains targeting, which allows the crystal inclusion to remain encapsulated in the mother cell at the end of sporulation, may have the potential to become more effective biological control agents in agricultural applications since the crystal inclusion remains encapsulated in the mother cell at the end of sporulation. Mother cell lysis has been well studied in , which involves three distinct yet functionally complementary cell wall hydrolases. In this study, a novel cell wall hydrolase, CwlC, was investigated and found to be essential for mother cell lysis in CwlC of only shows 9 and 21% sequence identity with known mother cell hydrolases CwlB and CwlC, respectively, suggesting that mechanisms of mother cell lysis may differ between and The gene deletion completely blocked the release of spores and crystals from the mother cell without affecting insecticidal activity. This may provide a new effective strategy for crystal encapsulation against UV light inactivation.