Background: Dystrophic skeletal muscles overexpress ankyrin repeat domain protein 2 (ANKRD2), which inhibits myoblast differentiation. Results: Skeletal muscles of the mdm mouse overexpress ANKRD2 and inhibitor of DNA binding 3 (ID3) proteins, which cooperatively inhibit myoblast differentiation by physical interaction. Conclusion: Activation of SREBP-1/ANKRD2/ID3 pathway impairs, at least in part, skeletal muscle development inmdmmice. Significance: We provide evidence revealing a novel mechanism by which expression of ANKRD2 inhibits myoblast differentiation. Ankyrin repeat domain protein 2 (ANKRD2) translocates from the nucleus to the cytoplasm upon myogenic induction. Overexpression of ANKRD2 inhibits C2C12 myoblast differentiation. However, the mechanism by which ANKRD2 inhibits myoblast differentiation is unknown. We demonstrate that the primary myoblasts of mdm (muscular dystrophy with myositis) mice (pMB mdm) overexpress ANKRD2 and ID3 (inhibitor of DNA binding 3) proteins and are unable to differentiate into myotubes upon myogenic induction. Although suppression of either ANKRD2 or ID3 induces myoblast differentiation in mdmmice, overexpression of ANKRD2 and inhibition of ID3 or vice versa is insufficient to inhibit myoblast differentiation in WT mice. We identified that ANKRD2 and ID3 cooperatively inhibit myoblast differentiation by physical interaction. Interestingly, although MyoD activates the Ankrd2 promoter in the skeletal muscles of wild-type mice, SREBP-1 (sterol regulatory element binding protein-1) activates the same promoter in the skeletal muscles of mdm mice, suggesting the differential regulation of Ankrd2. Overall, we uncovered a novel pathway in which SREBP-1/ANKRD2/ID3 activation inhibits myoblast differentiation, and we propose that this pathway acts as a critical determinant of the skeletal muscle developmental program. © 2013 by The American Society for Biochemistry and Molecular Biology, Inc.