In a previous study, we have shown that Activin B is a potent chemoattractant for bone marrow-derived mesenchymal stromal cells (BMSCs). As such, the combination of Activin B and BMSCs significantly accelerated rat skin wound healing. In another study, we showed that RhoA activation plays a key role in Activin B-induced BMSC migration. However, the role of the immediate downstream effectors of RhoA in this process is unclear. Here, we demonstrated that mammalian homolog of Drosophila diaphanous-1 (mDia1), a downstream effector of RhoA, exerts a crucial function in Activin B-induced BMSC migration by promoting membrane ruffling, microtubule morphology, and adhesion signaling dynamics. Furthermore, we showed that Activin B does not change Rac1 activity but increases Cdc42 activity in BMSCs. Inactivation of Cdc42 inhibited Activin B-stimulated Golgi reorientation and the cell migration of BMSCs. Furthermore, knockdown of mDia1 affected Activin B-induced BMSC-mediated wound healing in vivo. In conclusion, this study demonstrated that the RhoA-mDia1 and Cdc42 pathways regulate Activin B-induced BMSC migration. This study may help to optimize clinical MSC-based transplantation strategies to promote skin wound healing. STEM CELLS 2019;37:150-161 SIGNIFICANCE STATEMENT This study demonstrates that the RhoA-mDia1 pathway exerts a crucial function in Activin B-induced bone marrow-derived mesenchymal stromal cell (BMSC) migration by regulating membrane ruffle formation, microtubule morphology, and focal adhesion signaling dynamics. Cdc42 regulates Activin B-induced Golgi reorientation at the leading edge of moving BMSCs. Knockdown of mDia1 affects Activin B-induced BMSC-mediated wound healing in vivo. This study has revealed new molecular mechanisms of BMSC migration that will help optimize MSCbased transplantation strategies in clinical skin wound healing.