The rhomboid 5 homolog 2 (Rhbdf2) gene encodes an inactive rhomboid (iRhom) protease, iRhom2, one of a family of enzymes containing a long cytosolic N terminus and a dormant peptidase domain of unknown function. iRhom2 has been implicated in epithelial regeneration and cancer growth through constitutive activation of epidermal growth factor receptor (EGFR) signaling. However, little is known about the physiological substrates for iRhom2 or the molecular mechanisms underlying these functions. We show that iRhom2 is a short-lived protein whose stability can be increased by select mutations in the N-terminal domain. In turn, these stable variants function to augment the secretion of EGF family ligands, including amphiregulin, independent of metalloprotease a disintegrin and metalloproteinase 17 (ADAM17) activity. In vivo, N-terminal iRhom2 mutations induce accelerated wound healing as well as accelerated tumorigenesis, but they do not drive spontaneous tumor development. This work underscores the physiological prominence of iRhom2 in controlling EGFR signaling events involved in wound healing and neoplastic growth, and yields insight into the function of key iRhom2 domains.curly bare | ERAD | tylosis | epithelial cancer | pseudoenzyme I nactive rhomboids (iRhoms) are highly conserved but proteolytically inactive intramembrane proteins (1). iRhoms are characterized by a long cytosolic N-terminal domain, a conserved cysteine-rich iRhom homology domain (IRHD), and a dormant proteolytic site lacking an active-site serine residue within the peptidase domain (1). Recently, Greenblatt et al. (2) reported that Derlin-1 belongs to the rhomboid family and suggested that a dual role exists for the cytosolic and peptidase domains of this novel rhomboid pseudoprotease. They showed that although the cytosolic domain of Derlin-1 is essential in mammalian cells for clearance of misfolded proteins from the endoplasmic reticulum, the transmembrane domain is required to interact with its substrates (2), suggesting that these two domains have distinctive functions. The physiological significance of these domains is unclear.Despite their lack of proteolytic activity, iRhoms participate in a diverse range of functions in a variety of species, including regulation of epidermal growth factor receptor (EGFR) signaling in Drosophila melanogaster (3), survival of human squamous epithelial cancer cells (4, 5), misfolded protein clearance from endoplasmic reticulum membranes in mammalian cell lines (2), induction of migration in primary mouse keratinocytes (6), secretion of soluble TNF-α in mice (7,8), and regulation of substrate selectivity of stimulated a disintegrin and metalloproteinase 17 (ADAM17)-mediated metalloprotease shedding in mouse embryonic fibroblasts (MEFs) (6, 9). Although the physiological targets of iRhoms are largely unknown, mounting literature suggests that EGF-like ligands are potential substrates. For example, studies in D. melanogaster and in mammalian cell lines showed that iRhoms could negatively regulate EGFR signal...