Protein tyrosine phosphatases (PTPs) represent a super-family of enzymes that play essential roles in normal development and physiology. In this review, we will discuss the PTPs that have a causative role in hereditary diseases in humans. In addition, recent progress in the development and analysis of animal models expressing mutant PTPs will be presented. The impact of PTP signaling on health and disease will be exemplified for the fields of bone development, synaptogenesis and central nervous system diseases. Collectively, research on PTPs since the late 1980's yielded the cogent view that development of PTP-directed therapeutic tools is essential to further combat human disease.Abbreviations AChR, acetylcholine receptor; Akt/PKB, Akt/protein kinase B; AMPAR, a-amino-3-hydroxy-5-methyl-4-isoxazolepropionic acid receptor; CNS, central nervous system; CNTN-1, contactin-1; CSPG, chondroitin sulfate proteoglycan; cyt, cytosolic; DLAR, ortholog of the mammalian LAR family, type IIa RPTPs; DUSP, dual-specificity PTP; EAE, experimental autoimmune encephalomyelitis; EKO, PTPe knockout; FERM, 4.1 protein/ezrin/radixin/moesin; FNIII, fibronectin type III; GRIP, glutamate receptor interacting protein; HD-PTP, His-domain containing PTP; HSPG, heparan sulfate proteoglycan; IL1RAPL1, interleukin-1 receptor accessory protein-like 1; JNK, c-Jun N-terminal kinase; LAR, leukocyte common antigen related; LTD, long-term depression; LTP, long-term potentiation; LYP, lymphoid tyrosine phosphatase; MAP, mitogenactivated protein; MAPK, mitogen-activated protein kinase; M-CSF/CSF-1, colony stimulating factor 1 (macrophage); (m)GluR, (metabotropic) Glutamate receptor; MKO, Mkp-1 knockout; MS, multiple sclerosis; MuSK, Muscle specific kinase; NGL-3, netrin-G ligand-3; NMDAR, N-methyl-D-aspartate receptor; NMJ, neuromuscular junction; OLG, oligodendrocyte; OPC, oligodendrocyte precursor cell; PDZ, PSD95/disc large tumor suppressor/zona occludens protein; PEZ, PTP/ezrin-like; PSD95, post-synaptic density protein 95; PSTPIP, proline serine threonine-rich phosphatase interacting protein; PTEN, phosphatase and tensin homolog; PTK, protein tyrosine kinase; PTP, protein tyrosine phosphatase; PTP-BL, PTP-BAS-like; PTP-PEST, PTP with proline/glutamate/serine/threonine-rich domains; Pyk2, product of PTK2b gene; RANKL, receptor activator of nuclear factor kappaB ligand; RhoGAP, Rho GTPase activating protein; RPTP, receptor-type PTP; SAP-1, stomach cancer-associated PTP-1; SFK, Src-family tyrosine kinase; SH2, Src homology type 2; SHP, SH2 domain containing PTP; SNP, single nucleotide polymorphism; STEP, striatal-enriched phosphatase; TCPTP, T-cell PTP; TCR, T-cell receptor; TGF-b3 transforming growth factor b3; WASP, Wiskott-Aldrich Syndrome protein.