Post-translational histone modifications play important roles in regulating gene expression programs, which in turn determine cell fate and lineage commitment during development. One such modification is histone ubiquitination, which primarily targets histone H2A and H2B. Although ubiquitination of H2A and H2B has been generally linked to gene silencing and gene activation, respectively, the functions of histone ubiquitination during eukaryote development are not well understood. Here, we identified USP12 and USP46 as histone H2A and H2B deubiquitinases that regulate Xenopus development. USP12 and USP46 prefer nucleosomal substrates and deubiquitinate both histone H2A and H2B in vitro and in vivo. WDR48, a WD40 repeat-containing protein, interacts with USP12 and USP46 and is required for the histone deubiquitination activity. Overexpression of either gene leads to gastrulation defects without affecting mesodermal cell fate, whereas knockdown of USP12 in Xenopus embryos results in reduction of a subset of mesodermal genes at gastrula stages. Immunohistochemical staining and chromatin immunoprecipitation assays revealed that USP12 regulates histone deubiquitination in the mesoderm and at specific gene promoters during Xenopus development. Taken together, this study identifies USP12 and USP46 as histone deubiquitinases for H2A and H2B and reveals that USP12 regulates Xenopus development during gastrula stages.Eukaryotic development requires precise control of gene expression patterns that are essential for cellular identity and differentiation (1, 2). Genomic DNA in eukaryotic cells is organized into a chromatin structure by association with histone and non-histone proteins (3, 4), and the structure of chromatin is believed to play a critical role in regulating chromatin-templated nuclear processes such as transcription (5, 6). Post-translational modifications of histones represent a major mechanism by which cells control the structure and function of chromatin. An increasing list of histone-modifying enzymes and histone modifications has been shown to be critical for normal development and to play causal roles in the pathogenesis of certain human diseases (7-9).Of the vast variety of histone modifications, histone ubiquitination is unique, in which a 76-amino acid bulky protein is attached primarily to histone H2A and H2B (10, 11). The recent characterization of ubiquitin ligase hPRC1L and deubiquitinase Ubp-M (USP16) for histone H2A revealed critical functions for this modification in gene silencing, X inactivation, cell cycle progression, and DNA damage repair (12-15). In addition to Ubp-M, 2A-DUB (MYSM1) and USP21 were also identified as H2A-specific deubiquitinases (16,17). These enzymes might function in different cellular processes, for example, 2A-DUB in androgen receptor-mediated gene activation and USP21 in liver regeneration (16,17). Recently, the Drosophila PcG gene calypso was found to encode a ubiquitin C-terminal hydrolase BAP1, which specifically deubiquitinates histone H2A and regulates Hox gene r...