The body cavity is a space where internal organs develop and are placed. Despite the importance of this internal space, how the body cavity forms specifically within the mesoderm remains largely unknown. Here, we report that upon the onset of dorsal mesodermal cell polarization and initial lumen formation, mesodermal cells form filamentous projections that are directed toward the ectoderm. This cell behavior enables the dorsal population of mesodermal cells to receive BMP7 that is expressed by the ectoderm. Suppression of ectodermal BMP7 diminishes mesodermal cell projection and results in the loss of body cavity development. The data reveal that body cavity induction depends on signaling factor transfer from ectoderm to mesoderm.