We recently reported that the pharmacological inhibition of calcineurin (Cn) by low concentrations of cyclosporin A increases osteoblast differentiation in vitro and bone mass in vivo. To determine whether Cn exerts direct actions in osteoblasts, we generated mice lacking Cnb1 (Cn regulatory subunit) in osteoblasts (⌬Cnb1 OB ) using Cre-mediated recombination methods. Transgenic mice expressing Cre recombinase, driven by the human osteocalcin promoter, were crossed with homozygous mice that express loxP-flanked Cnb1 (Cnb1 f/f ). Microcomputed tomography analysis of tibiae at 3 months showed that ⌬Cnb1 OB mice had dramatic increases in bone mass compared with controls. Histomorphometric analyses showed significant increases in mineral apposition rate (67%), bone volume (32%), trabecular thickness (29%), and osteoblast numbers (68%) as well as a 40% decrease in osteoclast numbers as compared with the values from control mice. To delete Cnb1 in vitro, primary calvarial osteoblasts, harvested from Cnb1 f/f mice, were infected with adenovirus expressing the Cre recombinase. Cre-expressing osteoblasts had a complete inhibition of Cnb1 protein levels but differentiated and mineralized more rapidly than control, green fluorescent protein-expressing cells. Deletion of Cnb1 increased expression of osteoprotegerin and decreased expression of RANKL. Co-culturing Cnb1-deficient osteoblasts with wild type osteoclasts demonstrated that osteoblasts lacking Cnb1 failed to support osteoclast differentiation in vitro. Taken together, our findings demonstrate that the inhibition of Cnb1 in osteoblasts increases bone mass by directly increasing osteoblast differentiation and indirectly decreasing osteoclastogenesis.Bone is a highly dynamic structure that is constantly renewing through a process called remodeling (1). This process is critical for maintaining healthy bones and is mainly controlled by the activities of bone-forming osteoblasts and bone-resorbing osteoclasts. The presence of these two opposing cell types with contrasting activities in close proximity requires tight regulation to maintain healthy and strong bones. Bone resorption is attained by the action of osteoclasts, which are specialized macrophages whose differentiation is primarily regulated by receptor activator of NF B ligand (RANKL) 2 and osteoprotegerin (OPG) (2). Osteoblasts originate from multipotent mesenchymal progenitors that replicate as undifferentiated cells but have the potential to differentiate into different lineages of mesenchymal tissues including bone, cartilage, fat, muscle, and marrow stroma (3, 4). Osteoblasts control bone formation not only by synthesizing bone matrix proteins and regulating mineralization but also by orchestrating the process of bone resorption through the modulation of RANKL and OPG expression (2, 4).We have recently shown that the pharmacologic inhibition of calcineurin (Cn) by low concentrations of cyclosporin A (CsA) increases osteoblast differentiation and bone formation (5). We also demonstrated that this response was...