CDO is a cell surface receptor-like protein that positively regulates myogenic differentiation. Reported here is the identification of BOC, which, with CDO, defines a newly recognized subfamily within the immunoglobulin superfamily. cdo and boc are co-expressed in muscle precursors in the developing mouse embryo. Like CDO, BOC accelerates differentiation of cultured myoblast cell lines and participates in a positive feedback loop with the myogenic transcription factor, MyoD. CDO and BOC form complexes in a cis fashion via association of both their ectodomains and their intracellular domains. A soluble fusion protein that contains the entire BOC ectodomain functions similarly to full-length BOC to promote myogenic differentiation, indicating that the intracellular region is dispensable for its activity in this system. Furthermore, a dominant-negative form of CDO inhibits the pro-myogenic effects of soluble BOC, suggesting that BOC is dependent on CDO for its activity. CDO and BOC are proposed to be components of a receptor complex that mediates some of the cell-cell interactions between muscle precursors that are required for myogenesis.