We find that during embryogenesis the expression of HMGN1, a nuclear protein that binds to nucleosomes and reduces the compaction of the chromatin fiber, is progressively down-regulated throughout the entire embryo, except in committed but continuously renewing cell types, such as the basal layer of the epithelium. In the developing limb bud, the expression of HMGN1 is complementary to Sox9, a master regulator of the chondrocyte lineage. In limb bud micromass cultures, which faithfully mimic in vivo chondrogenic differentiation, loss of HMGN1 accelerates differentiation. Expression of wild-type HMGN1, but not of a mutant HMGN1 that does not bind to chromatin, in Hmgn1 ؊/؊ micromass cultures inhibits Sox9 expression and retards differentiation. Chromatin immunoprecipitation analysis reveals that HMGN1 binds to Sox9 chromatin in cells that are poised to express Sox9. Loss of HMGN1 elevates the amount of HMGN2 bound to Sox9, suggesting functional redundancy among these proteins. These findings suggest a role for HMGN1 in chromatin remodeling during embryogenesis and in the activation of Sox9 during chondrogenesis.During organogenesis of the vertebrate embryo, multipotent progenitor cells undergo a complex process of differentiation according to their fate. Cellular differentiation involves the execution of a preprogrammed, orderly process that involves multiple changes in gene expression. It is well documented that chromatin structure plays a key role in regulating gene expression and that the chromatin structure of specific genes is remodeled during the differentiation. It is therefore possible that nuclear proteins such as the high mobility group N (HMGN), which affect chromatin structure (4), histone modifications (17, 18) and transcription rates (11,30), may play a role in differentiation processes.The HMG superfamily of proteins consists of three families, HMGA, HMGB, and HMGN, all of which have been shown to modulate the structure and activity of the chromatin fiber (5). Members of the HMGN family bind specifically to the building block of the chromatin fiber, the nucleosome core particle, without any known specificity for the underlying DNA sequence (28). The interaction of the proteins with chromatin is dynamic, and HMGN proteins continuously exchange among nucleosomes (7, 25). The binding of HMGN to nucleosomes reduces the compaction of chromatin fiber and enhances transcription from chromatin templates (11,22,30). HMGNs modulate the levels of posttranslational modifications in the histone tails (17), most likely because their presence on nucleosomes affects the ability of nucleosome remodeling complexes to reach their targets. These findings and additional studies suggest that HMGN proteins modulate chromatin-related activities, including transcription (4).The expression level of Hmgn genes is related to cellular differentiation processes, such as erythropoiesis, myogenesis, osteoblast differentiation, kidney organogenesis, preimplantation development of early mouse embryo, and Xenopus embryogenesis (1,9,...