A highly purified fraction with bone-inducing potential was obtained from a murine osteosarcoma using initial fractionation, gel filtration on Sephacryl S-200, and cation-exchange, hydroxyapatite and reverse-phase h.p.l.c. Protein sequencing of the sample derived from this active fraction revealed the N-terminal amino acid sequence to be Ala-Ala-Leu-Arg-Pro-Leu-Val-Lys-Pro, which is identical to the N-terminal sequence of mouse, human and rat ribosomal protein L32, except for an additional methionine residue at the N-terminus of the three latter proteins. Amino acid analysis of the sample also showed its similarity to L32. Two lines of evidence using an antibody specific for the above peptide strongly suggest that this L32-related protein from a murine osteosarcoma has the potential to induce ectopic bone formation. First, the protein specifically detected by the antibody co-distributes with the bone-inducing active fraction. Secondly, a highly purified sample obtained using the antibody was shown to induce the formation of bone with active haematopoiesis.