Bone morphogenetic proteins (BMPs) play important roles at multiple stages of endochondral bone formation. However, the roles of BMP signaling in chondrocytes in vivo are still contentious. In the present study, we overexpressed a constitutively active BMP receptor 1A (caBmpr1a) in chondrocytes by using two systems: caBmpr1a was directly driven by a rat type II collagen promoter in a conventional transgenic system and indirectly driven in a UASGal4 binary system. CaBmpr1a expression caused shortening of the columnar layer of proliferating chondrocytes and up-regulation of maturation markers, suggesting acceleration of differentiation of proliferating chondrocytes toward hypertrophic chondrocytes. In addition to the acceleration of chondrocyte differentiation, conventional transgenic mice showed widening of cartilage elements and morphological alteration of perichondrial cells, possibly due to stimulation of differentiation of prechondrogenic cells. Moreover, bigenic expression of caBmpr1a rescued the differentiation defect of prechondrogenic cells in Bmpr1b-null phalanges. This finding indicates that BMP signaling is necessary for phalangeal prechondrogenic cells to differentiate into chondrocytes and that signaling of BMP receptor 1B in this context is replaceable by that of a constitutively active BMP receptor 1A. These results suggest that BMP signaling in prechondrogenic cells and in growth plate chondrocytes stimulates their chondrocytic differentiation and maturation toward hypertrophy, respectively. bone morphogenetic protein receptor 1A ͉ bone morphogenetic protein receptor 1B ͉ bone morphogenetic protein ͉ chondrocyte differentiation ͉ transgenic B one morphogenetic proteins (BMPs) play critical roles at various stages of skeletal development (1, 2). BMPs and their receptors are present in chondrocytes and adjacent perichondrium (3-6) and seem to affect the differentiation of chondrocytes. However, the effects of stimulation of BMP signaling on differentiation of growth-plate chondrocytes are diverse and depend on the model under study. Studies using cell culture systems have shown that BMPs generally stimulate hypertrophic differentiation of chondrocytes (7-12). Studies analyzing the addition of different BMPs to bone explants have yielded variable results, including stimulation of hypertrophy (13), delay in hypertrophy (14), or delay in conversion of early hypertrophic chondrocytes to late hypertrophic chondrocytes (15). Retroviral expression of BMPs, constitutively active or dominant negative BMP receptors, or a BMP inhibitor in developing chicken limbs has shown that increased or decreased BMP action causes abnormal cartilage formation (16)(17)(18)(19). In these chicken͞retroviral systems, stimulation of BMP signaling generally causes irregular expansion of cartilaginous elements. Overexpression of a constitutively active BMP receptor 1A (caBmpr1a) was reported to inhibit hypertrophic differentiation of chondrocytes (19). Effects of BMPs on the skeletal system also have been studied by using transge...