SPARC (secreted protein, acidic and rich in cysteine), a matricellular glycoprotein, modulates the interaction of cells with the extracellular matrix (ECM).Recently, accelerated cutaneous wound closure and altered deposition of collagen were reported in SPARC-null mice. Herein we asked whether SPARC might influence the foreign body reaction to biomaterial implants. Polydimethylsiloxane (silicone rubber) disks and cellulose Millipore filters were implanted into wild-type and SPARC-null mice. In wild-type animals, significant levels of SPARC were observed in the cells and the ECM comprising the capsules around the implants. After 4 weeks, SPARC-null mice exhibited a significant decrease in the thickness of the foreign body capsule, as compared to that observed in wildtype mice. A significant reduction in capsular vascular density was also associated with the silicone implants in the SPARC-null animals. Electron microscopy revealed that collagen fibers in the capsules produced by SPARC-null mice were smaller and more uniform in size than those in wild-type animals. Furthermore, staining with picrosirius-red showed that the collagen fibers were less mature in SPARC-null than in wild-type mice. The altered ECM resulting in decreased capsular thickness, indicative of an altered foreign body reaction in SPARC-null mice, implicates SPARC as an important modulator of the encapsulation of implanted biomaterials. (Am J Pathol 2003, 162:627-635) Extracellular matrix (ECM) can regulate the migration, proliferation, and/or differentiation of cells. The ECM is composed of structural proteins, proteoglycans, growth factors, and matricellular proteins that include thrombospondins 1 and 2, osteopontin, tenascin-C, and SPARC (secreted protein, acidic and rich in cysteine). Matricellular proteins are known to modulate cell-matrix interactions and aspects of the cell cycle that control proliferation or apoptosis.1,2 A number of matricellular proteins show increased expression in response to injury.2-4 For example, thrombospondin 2-null mice display accelerated excisional wound healing and an altered foreign body reaction (FBR) to silicone implants. 5,6 SPARC, also known as BM-40 and osteonectin, is a calcium-binding glycoprotein secreted by many cells, eg, fibroblasts, endothelial cells, and platelets.7-10 As a matricellular protein, SPARC does not contribute structurally to ECM; rather, it regulates the production of several ECM proteins.2 Two principal functions of SPARC are its modulation of cell shape and inhibition of cell-cycle progression.2 In vivo, SPARC is expressed in remodeling tissues, such as healing cutaneous wounds and bowel anastomoses, and during bone formation, adipogenesis, and angiogenesis.