Phosphatidylethanolamine-binding protein (PEBP) is widely involved in various physiological behaviors, such as the transition from vegetative growth to reproductive growth in plants, tumorigenesis in the human, etc. However, few functional studies have examinedpebpgenes affecting the development of fungi. In this study,Capebp2was cloned fromCyclocybe aegeritaAC0007 strains based on the genome sequence and gene prediction, and the sequence alignment of CaPEBP2 with other PEBP proteins from other biological sources including plant, animal, fungi, and bacteria indicated that PEBP had low sequence similarity in fungi, whereas all protein sequences had some conserved motifs such as DPDAP and HRY. Expression analysis showed the transcription level ofCapebp2increased approximately 20-fold in fruiting bodies compared with mycelia. To uncover the function ofCapebp2inC. aegetitadevelopment,Capebp2was cloned into a pATH vector driven by theactinpromoter for obtaining overexpression transformant lines. Fruiting experiments showed the transformed strains overexpressingCapebp2exhibited redifferentiation of the cap on their surface, including intact fruiting bodies or partial lamella during fruiting development stage, and the longitudinal section indicated that all regenerated bodies or lamella sprouted from the flesh and shared the epidermis with the mother fruiting bodies. In summary, the sequence characterization ofCapebp2, expression level during different development stages, and function on fruiting body development were documented in this study, and these findings provided a reference to study the role ofpebpin the development process of basidiomycetes. Importantly, gene mining ofpebp, function characterization, and the regulating pathways involved need to be uncovered in further studies.