Biglycan, a class I small leucine rich proteoglycan (SLRP) present in the extracellular matrix, influences bone cell differentiation and proliferation. Biglycan contains two chondroitin sulfate glucosaminoglycan (GAG) chains attached near its amino terminus, whereas a closely related SLRP, decorin, contains only one. Biglycan deficient specimens possess diminished capacity to produce bone cells precursors, a lessened response to TGFβ, reduced collagen synthesis, and increased apoptosis. Patients with rheumatoid arthritis express increased immunity to biglycan whereas osteoarthritis patients do not, suggesting that higher immunity to SLRPs may play a role in the pathogenesis of inflammatory rheumatic diseases.