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The activities of osteoclasts, which degrade bone, and osteoblasts, which form bone, are coordinated to maintain bone homeostasis. Zhao et al. (2006) now demonstrate bidirectional signaling between these two cell populations via the transmembrane ligand ephrinB2 expressed by osteoclasts and its receptor EphB4 expressed by osteoblasts. Such bidirectional signaling limits osteoclast activity while stimulating osteoblast differentiation.