Tripartite motif containing 21 (TRIM21) is a member of the TRIM protein family with E3 ubiquitin ligase activity. Recent studies have demonstrated that TRIM21 widely contributes to physiological and pathological processes by ubiquitylating critical proteins in many kinds of cells. Additionally, multiple studies have shown that TRIM21 plays an important role in multiple cell differentiation processes. However, whether TRIM21 modulates the osteogenic differentiation process of mesenchymal stem cells (MSCs) remains unclear. In this study, we demonstrated that the expression of TRIM21 was decreased during the osteogenic process of MSCs and that TRIM21 negatively regulated the osteogenic capacity of MSCs both in vitro and in vivo. Moreover, we further demonstrated that TRIM21 modulated the osteogenic process of MSCs by acting as an E3 ubiquitin ligase to mediate the K48-linked ubiquitination of Akt and cause degradation. In summary, these results emphasize the critical role of TRIM21 in bone formation and TRIM21 may be a promising target to improve the clinical use of MSCs in tissue engineering.