Ablation of the cellular prion protein PrPC leads to a chronic demyelinating polyneuropathy (CDP) affecting Schwann cells. Neuron-restricted PrPC expression prevents the disease1, suggesting that it acts in trans through an unidentified Schwann cell receptor. We found that the cAMP concentration in PrPC-deficient sciatic nerves is reduced, suggesting the involvement of a G protein-coupled receptor (GPCR). The amino-terminal “flexible tail” (FT, residues 23-120) of PrPC triggered a concentration-dependent cAMP increase in primary Schwann cells, in the Schwann-cell line SW10, and in Hek293T cells overexpressing the GPCR Gpr126/Adgrg6. In contrast, naïve HEK293T cells and HEK293T cells expressing several other GPCRs did not react to the FT, and ablation of Gpr126 from SW10 cells abolished the FT-induced cAMP response. The FT contains a polycationic cluster (KKRPKPG) similar to the GPRGKPG motif of the Gpr126 agonist, type-IV collagen2 (Col4). A KKRPKPG-containing PrPC-derived peptide (FT23-50) sufficed to induce a Gpr126-dependent cAMP response in cells and mice, and improved myelination in hypomorphic Gpr126 zebrafish mutants. Substitution of the cationic residues with alanines abolished the biological activity of both FT23-50 and the respective Col4 peptide. We conclude that PrPC promotes myelin homeostasis through FT-mediated Gpr126 agonism. Besides clarifying the physiological role of PrPC, these observations are relevant to the pathogenesis of demyelinating polyneuropathies, common debilitating diseases with limited therapeutic options.