Probably involved in signal transduction, in the nervous system, via increasing cell surface localization of GRM5 and positively regulating its signaling. Required for the spatial learning process. Acts as a negative regulator of Ca(2+)-calmodulin-dependent protein kinase 2 (CaMK2) phosphorylation. May play a role in modulating melanin-concentrating hormone-mediated functions via its interaction with MCHR1 that interferes with G protein-coupled signal transduction. May be involved in bone metabolism. May also be involved in neurite outgrowth. Interacts with MCHR1 (By similarity). Interacts with SEMA4C (PubMed:11162505). Interacts with DIAPH1 (via FH3 domain) (PubMed:18572016). Interacts with GRM5 (By similarity). Localizes to somatic regions of neurons. Localization to endosome membrane requires palmitoylation. Expressed in the neuronal, chondral and bone tissues. Expressed in dendrites. Enriched in the brain in the surface layer I-IV. In brains, protein level increases in male but decreases in female with advancing age (at protein level). In adult brains, it is highly expressed in the forebrain and hindbrain. Highly expressed in the hippocampus, piriform cortex, septum, amygdaloid complex, medial geniculate nucleus, inferior colliculus, cerebellar nuclei and the nuclei of the Vth, VIIth, and XIIth cranial nerves. In bone tissues, it is expressed in osteoblasts and osteocytes. In the developing brain, it is first expressed in the hindbrain and spinal cord at 10.5 dpc followed by expression in the midbrain at 11.5 dpc. By 18 dpc it is also expressed in the diencephalon and telencephalon, with a strongest expression in the hindbrain. Highly expressed in the developing olfactory bulb and in the lateral choroid plexus. Palmitoylated. Palmitoylation by ZDHHC1, ZDHHC3 and ZDHHC11 regulates the association of NCDN with endosome membranes. May also be palmitoylated by ZDHHC7. Death between 3.5 and 6.5 dpc. Heterozygous mutant do not display gross anatomic abnormalities. They however show abnormalities in developing cartilage. Nervous system-specific gene disruption by conditional knockout results in epileptic seizure. Displays no overt neurite outgrowth phenotype (PubMed:15790563). Shows a behavioral phenotype associated with a rodent model of schizophrenia, as observed in alterations in both sensorimotor gating and psychotomimetic-induced locomotor activity. Belongs to the neurochondrin family.