HtrA1 is a secreted multidomain protein with serine protease activity. In light of increasing evidence implicating this protein in the regulation of skeletal development and pathology, we investigated the role of HtrA1 in osteoblast mineralization and identified domains essential for this activity. We demonstrate increased HtrA1 expression in differentiating 2T3 osteoblasts prior to the appearance of mineralization. HtrA1 is subsequently down-regulated in fully mineralized cultures. The functional role of HtrA1 in matrix calcification was investigated using three complementary approaches. First, we transfected a full-length HtrA1 expression plasmid into 2T3 cells and showed that overexpression of HtrA1 delayed mineralization, reduced expression of Cbfa1 and collagen type I mRNA, and prevented BMP-2-induced mineralization. Second, knocking down HtrA1 expression using short interfering RNA induced mineral deposition by 2T3 cells. Third, by expressing a series of recombinant HtrA1 proteins, we demonstrated that the protease domain and the PDZ domain are essential for the inhibitory effect of HtrA1 on osteoblast mineralization. Finally, we tested whether HtrA1 cleaves specific matrix proteins that are known to regulate osteoblast differentiation, mineralization, and/or BMP-2 activity. Full-length recombinant HtrA1 cleaved recombinant decorin, fibronectin, and matrix Gla protein. Both the protease domain and the PDZ domain were necessary for the cleavage of matrix Gla protein, whereas the PDZ domain was not required for the cleavage of decorin or fibronectin. Type I collagen was not cleaved by recombinant HtrA1. These results suggest that HtrA1 may regulate matrix calcification via the inhibition of BMP-2 signaling, modulating osteoblast gene expression, and/or via the degradation of specific matrix proteins.Mammalian HtrA1 is a member of the family of HtrA (high temperature requirement) proteins that were originally identified in bacteria (1). These proteins are characterized by the presence of a trypsin-like serine protease domain and either one or two PDZ domains. However, in contrast to bacterial HtrA, mammalian HtrA1 is secreted, and it also contains an IGFBP 4 /mac25-like domain and a Kazal-type inhibitor domain at the N terminus (2, 3). Evidence is now accumulating to suggest that HtrA1 is involved in the development and progression of several pathologies. HtrA1 has been found to exhibit properties of a tumor suppressor protein, as its expression is downregulated in many cancer cell lines (2, 4), low levels of HtrA1 are detected in cancerous tissue compared with normal tissues (4, 5), and overexpression of this protein inhibits tumor cell growth in vivo and in vitro (4, 5). HtrA1 expression is also markedly up-regulated in several diseases, including rheumatoid arthritis and osteoarthritis (3, 6 -8), Alzheimer disease (9), and Duchenne muscular dystrophy (10). In addition, a single-nucleotide polymorphism in the gene encoding HtrA1 has been shown to increase susceptibility to age-related macular degeneration (...