The transcription factor Sox2 is a key player in the maintenance of pluripotency and "stemness. To form bone, fat, muscle, and cartilage, multipotent mesenchymal stem cells (MSCs) must commit to a specific cell lineage and then undergo a sequential program of proliferation and differentiation. Primitive osteoprogenitors are thought to arise from multipotent MSCs that commit to and then differentiate into preosteoblast and mature bone-forming osteoblasts (4, 41). Signaling networks of fibroblast growth factors (FGFs), bone morphogenetic proteins (BMPs), Indian Hedgehog homolog (IHH), Wnt, and Notch orchestrate this complex process (20,23), and the transcription factors Runx2 and Osterix (OSX) are essential for formation of the osteoblastic lineage (22, 32). However, little is known about other factors that regulate early cell fate decisions and the mechanisms that determine the balance between self-renewal and differentiation of osteoprogenitor cells (20).We recently reported that the transcription factor Sox2 is essential for the self-renewal and proliferation of osteoblast precursors. Conditional knockout (cko) of the Sox2 gene in the osteoblastic lineage generates mice that, although mosaic with respect to Sox2 inactivation, are strongly osteopenic, and Sox2 inactivation in cultured primary osteoblasts has been shown to cause exhaustion of their proliferative ability and induction of senescence (6). Sox2 expression is highly enriched in a small subset of primary osteoblasts that form nonadherent spheres that are thought to represent a stem-like population (6). These findings suggested that Sox2 marks and maintains a population of multipotent or unipotent osteoblast stem cells that is responsible for self-renewal of the osteoblast lineage.Sox2, a member of the Sox HMG box family of transcription factors, is required early in embryonic development to maintain pluripotency and self-renewal in embryonic stem (ES) cells (37). Sox2 is a maternally transmitted factor that is first expressed in the cells of the inner cell mass of the blastocyst. In the developing embryo, Sox2 expression is extinguished in most tissues, but it remains strongly expressed in stem cells of the central nervous system (CNS), retina, and the primordial gut (40,42,50) and plays an essential role in the maintenance of undifferentiated lineage progenitors such as neural stem cells (15,40). It is also a critical reprogramming factor for the conversion of somatic cells to induced pluripotent stem cells (iPSC) (48).In the osteoblast lineage, Sox2 is expressed at relatively low levels in immature cells, both in vitro and in vivo, and is induced by FGF signaling that stimulates proliferation of preosteoblasts and inhibits their differentiation (25). Constitutive expression of Sox2 can increase sphere formation and by itself can inhibit osteoblast differentiation. Sox2 also participates in the inhibitory effect of FGF on the prodifferentiation Wnt pathway by binding to -catenin, a major effector of canonical Wnt signaling, and inhibiting its transcr...