As small regulatory transcripts, microRNAs (miRs) act as genetic ‘fine tuners’ of posttranscriptional events, and as genetic switches to promote phenotypic switching. The miR
miR26a
targets the BMP signalling effector,
smad1
. We show that loss of
miR26a
leads to hemorrhage (a loss of vascular stability)
in vivo
, suggesting altered vascular differentiation. Reduction in
miR26a
levels increases
smad1
mRNA and phospho-Smad1 (pSmad1) levels. We show that increasing BMP signalling by overexpression of
smad1
also leads to hemorrhage. Normalization of Smad1 levels through double knockdown of
miR26a
and
smad1
rescues hemorrhage, suggesting a direct relationship between
miR26a
,
smad1
and vascular stability. Using an
in vivo
BMP genetic reporter and pSmad1 staining, we show that the effect of
miR26a
on smooth muscle differentiation is non-autonomous; BMP signalling is active in embryonic endothelial cells, but not in smooth muscle cells. Nonetheless, increased BMP signalling due to loss of
miR26a
results in an increase in
acta2
-expressing smooth muscle cell numbers and promotes a differentiated smooth muscle morphology. Similarly, forced expression of
smad1
in endothelial cells leads to an increase in smooth muscle cell number and coverage. Furthermore, smooth muscle phenotypes caused by inhibition of the BMP pathway are rescued by loss of
miR26a
. Taken together, our data suggest that
miR26a
modulates BMP signalling in endothelial cells and indirectly promotes a differentiated smooth muscle phenotype. Our data highlights how crosstalk from BMP-responsive endothelium to smooth muscle is important for smooth muscle differentiation.