During development, morphogenetic processes require the integration of numerous signals to properly shape cells and tissues. These signals are interpreted by cells to induce the precise transcriptional circuitry that controls morphogenesis. The cuticle pattern of the developing embryonic epidermis provides a valuable system to study how this process is executed. It is well established that the fly Wnt, wingless (wg), generates naked cuticle zones that separate the ventral denticle belts by repressing expression of shavenbaby (svb), which encodes a transcription factor required for denticle formation. What is not known is how Wg and Svb interact to produce the stereotyped diversity of denticle shapes within each belt. One possibility is that graded levels of Svb, responding to graded levels of Wg signaling, may determine denticle shape. Indeed, we found that the svb promoter responds differentially to altered Wg activity levels. However, artificially increasing the levels of ectopic svb does not produce morphologically distinct denticles, suggesting that additional factors may be involved. We have discovered that a second Wg-responsive transcription factor, encoded by SoxNeuro (SoxN), cooperates with Svb to shape the denticles. Co-expressing SoxN with svb in an ectopic location within the naked cuticle zone is sufficient to rescue shaping of the ectopic denticles. Strikingly, the expression of SoxN in svb null embryos produces rounded, remnant denticles resembling those present in svb null embryos, suggesting that SoxN activity in svb mutants promotes these remnant denticles. Consistent with this idea, svb;SoxN double mutant embryos secrete cuticles that completely lack ventral denticles and dorsal hairs. The lack of denticles in svb;SoxN embryos is not due to hyperactivity of Wg, because expression of the Wg target gene, engrailed, is not altered. We propose that Svb and SoxN together are required for proper denticle shaping, and we discuss target genes that show differential response to these transcription factors.