Bone morphogenetic protein (BMP) signaling regulates many different developmental and homeostatic processes in metazoans. The BMP pathway is conserved in <i>Caenorhabditis elegans</i>, and is known to regulate body size and mesoderm development. We have identified the <i>C. elegans
smoc-1</i> (Secreted MOdular Calcium binding protein-1) gene as a new player in the BMP pathway. <i>
smoc-1(0)</i> mutants have a small body size, while overexpression of <i>
smoc-1</i> led to a long body size and increased expression of the RAD-SMAD BMP reporter, suggesting that SMOC-1 acts as a positive modulator of BMP signaling. Using double mutant analysis, we showed that SMOC-1 antagonizes the function of the glypican LON-2 and acts through the BMP ligand DBL-1 to regulate BMP signaling. Moreover, SMOC-1 appears to specifically regulate BMP signaling without significant involvement in a TGF-like pathway that regulates dauer development. We found that <i>
smoc-1</i> is expressed in multiple tissues, including cells of the pharynx, intestine, and posterior hypodermis, and that the expression of <i>
smoc-1</i> in the intestine is positively regulated by BMP signaling. We further established that SMOC-1 functions cell non-autonomously to regulate body size. Human SMOC1 and SMOC2 can each partially rescue the <i>
smoc-1(0)</i> mutant phenotype, suggesting that SMOC-1's function in modulating BMP signaling is evolutionarily conserved. Together, our findings highlight a conserved role of SMOC proteins in modulating BMP signaling in metazoans.