Msx genes are transcription factors that are expressed during embryogenesis of developing appendages in regions of epithelial–mesenchymal interactions. Various lines of evidence indicate that these genes function to maintain embryonic tissues in an undifferentiated, proliferative state. We have identified the axolotl homolog of Msx‐2, and investigated its expression during limb development, limb regeneration, and wound healing. As in limb buds of higher vertebrates, axolotl Msx‐2 is expressed in the apical epidermis and mesenchyme; however, its expression domain is more extensive, reflecting the broader region of the apical epidermal cap in amphibians. Msx‐2 expression is downregulated at late stages of limb development, but is reexpressed within one hour after limb amputation. Msx‐2 is also reexpressed during wound healing, and may be essential in the early stages of initiation of the limb regeneration cascade. J. Exp. Zool. 282:715–723, 1998. © 1998 Wiley‐Liss, Inc.