Being a secreted protein, periostin is a multifunctional matricellular glycoprotein. In vitro, periostin has the ability to promote the proliferation and migration of fibroblasts. Previously, it was demonstrated that periostin is mainly produced by cancer-associated fibroblasts or tumor stromal cells. In the present study, we show that periostin regulates capsule formation in a positive manner and inhibits tumor growth. Consistent with a previous finding, several tumor cell lines did not exhibit expression of periostin in vitro or in vivo; and the growth of tumors that had been allografted into periostin -/- mice was significantly accelerated compared with that of the same kind of tumors grafted into periostin +/+ mice. Immunostaining and biochemical analyses revealed that mature collagen was detected abundantly in the capsules and interstitium of the wild-type-grafted tumors but not in those of the periostin -/- grafted tumors. Moreover, the number of activated tumor stromal cells was decreased significantly in the periostin -/- grafted tumors. Our studies suggest that host-derived periostin negatively regulates tumor growth by promoting capsule formation and by mediating changes in the deposition and organization of the tumor microenvironment coordinated by periostin-producing stromal cells.