Although degradation of cartilage matrix has been suggested to be a rate-limiting step for endochondral ossification during skeletal development, little is known about the transcriptional regulation. This study investigated the involvement of KLF5 (Krüppel-like factor 5), an Sp/KLF family member, in the skeletal development. KLF5 was expressed in chondrocytes and osteoblasts but not in osteoclasts. The heterozygous deficient (KLF5 ؉/؊ ) mice exhibited skeletal growth retardation in the perinatal period. Although chondrocyte proliferation and differentiation were normal, cartilage matrix degradation was impaired in KLF5 ؉/؊ mice, causing delay in replacement of cartilage with bone at the primary ossification center in the embryonic limbs and elongation of hypertrophic chondrocyte layer in the neonatal growth plates. Microarray analyses identified MMP9 (matrix metalloproteinase 9) as a transcriptional target, since it was strongly up-regulated by adenoviral transfection of KLF5 in chondrogenic cell line OUMS27. The KLF5 overexpression caused gelatin degradation by stimulating promoter activity of MMP9 without affecting chondrocyte differentiation or vascular endothelial growth factor expression in the culture of chondrogenic cells; however, in osteoclast precursors, it affected neither MMP9 expression nor osteoclastic differentiation. KLF5 dysfunction by genetic heterodeficiency or RNA interference was confirmed to cause reduction of MMP9 expression in cultured chondrogenic cells. MMP9 expression was decreased in the limbs of KLF5 ؉/؊ embryos, which was correlated with suppression of matrix degradation, calcification, and vascularization. We conclude that KLF5 causes cartilage matrix degradation through transcriptional induction of MMP9, providing the first evidence that transcriptional regulation of a proteinase contributes to endochondral ossification and skeletal development.Endochondral ossification is an essential process for skeletal development and growth (1). During the process, chondrocytes undergo proliferation and hypertrophic differentiation. The hypertrophic chondrocytes then secrete a specialized extracellular matrix rich in type X collagen (COL10), 2 which is replaced by bone matrix. The ossification begins with chondrocyte apoptosis, cartilage matrix degradation, calcification, vascular invasion from perichondrium and bone marrow, and deposition of bone matrix by osteoblasts (2). Among these individual steps, previous studies have indicated that degradation of cartilage matrix is particularly crucial (3-6). This step requires proteolytic breakdown by a variety of proteinases, among which members of the matrix metalloproteinase (MMP) family are of special interest due to their ability to cleave collagens and aggrecan, the two principal matrix components of cartilage (7,8). However, little is known about transcriptional regulation of MMPs in the endochondral ossification process.Members of the Krüppel-like factor (KLF) family are important transcription factors that regulate development, cellular dif...