Cell fusion involving progenitor cells is a newly recognized phenomenon thought to contribute to tissue differentiation. The molecular mechanisms governing cell fusion are unknown. P-glycoprotein and related ATP-binding cassette transporters are expressed by progenitor cells, but their physiological role in these cell types has not been defined. Here, we have cloned ABCB5, a rhodamine efflux transporter and novel member of the human P-glycoprotein family, which marks CD133-expressing progenitor cells among human epidermal melanocytes and determines as a regulator of membrane potential the propensity of this subpopulation to undergo cell fusion. Our findings show that polyploid ABCB5 ؉ cells are generated by cell fusion and that this process is specifically enhanced by ABCB5 Pglycoprotein blockade. Remarkably, multinucleated cell hybrids gave rise to mononucleated progeny, demonstrating that fusion contributes to culture growth and differentiation. Thus, our findings define a molecular mechanism for cell fusion involving progenitor cells and show that fusion and resultant growth and differentiation are not merely spontaneous events, but phenomena regulated by ABCB5 P-glycoprotein.Several recent reports have demonstrated that co-culture of pluripotent embryonic or mesenchymal stem cells with lineagecommitted cell types can give rise to cell hybrids as a result of cell fusion, and it has been shown that such cell hybrids can generate differentiated progeny in vitro and in vivo (1-5). These findings raise the possibility that cell fusion may represent a physiological mechanism by which endogenous progenitor cells participate in tissue plasticity and renewal. A cellular molecular marker identifying progenitor cells participating in cell fusion or associated with the regulation of cell fusion has as of yet not been identified, however. P-glycoproteins (P-gp) 1 and related members of the ABC superfamily of active transporters mediate multidrug resistance in mammalian cancers (6 -13) and serve physiologic transport (14 -21), differentiation (22, 23), and survival (24, 25) functions in nonmalignant cell types. Two known members of the ABC superfamily of transporters, ABCB1 (MDR1) P-gp and the ABCG2 (Bcrp1) transporter, are also expressed at high levels on stem and progenitor cell populations (26, 27), and the efflux capacity for the fluorescent dyes rhodamine-123 (28 -30) and Hoechst 33342 (31-34) mediated by these or related ABC transporters has been utilized for the isolation of such cell subsets. A physiologic role of ABC transporters in such progenitor cells has, however, not been defined. A recent study investigated a possible role of ABCB1 P-gp as a determinant of membrane fluidity and membrane potential, but ABCB1 P-gp was found not responsible for the plasma membrane hyperpolarization observed in multidrug resistant cells (35). Here we have cloned and characterized a novel, third member of the human P-gp family encoded on chromosome 7p21-15.3, designated ABCB5 (ATP-binding cassette, subfamily B (MDR/TAP), member ...