Extracellular signal peptide that regulates cell fate. May act with TDR as a ligand-receptor pair in a signal transduction pathway that represses tracheary element differentiation but promotes the formation of procambial cells adjacent to phloem cells in the veins in an auxin-dependent manner. Regulates the transition of protophloem cells from proliferation to differentiation, thus impinging on postembryonic growth capacity of the root meristem; this signaling pathway requires CRN and CLV2 (PubMed:28607033). CLE41p interacts specifically with the leucine-rich repeat receptor-like protein kinase TDR. Probably secreted from the phloem cells and distributed in the procambial region. Mostly expressed in inflorescence and roots, and, to a lower extent, in seedlings, flowers, leaves and siliques. Observed along the vascular strands in cotyledons, leaves and roots, but not in shoot apical meristems (SAM). Restricted to the phloem and the neighboring pericycle cells in the roots and hypocotyls. The O-glycosylation (arabinosylation) of the hydroxyproline Pro-94 enhances binding affinity of the CLE41p peptide for its receptor. Belongs to the CLV3/ESR signal peptide family.