The B lineage commitment factor Pax5 (BSAP) is exclusively expressed in B lymphocytes of the blood system. To study the effect of Pax5 on the development of other hematopoietic lineages, we generated a heterozygous knockin mouse carrying a Pax5 minigene under the control of the Ikaros locus. Conditional and constitutive activation of the Ik^Pax5 allele demonstrated that precocious Pax5 expression in hematopoietic stem cells and progenitors failed to interfere with myeloid development and only weakly affected erythroblast formation. Instead, pan-hematopoietic Pax5 expression strongly promoted B cell development at the expense of T lymphopoiesis. Pax5 thereby interfered with T lineage commitment and early thymocyte development by repressing the transcription of the T cell specification gene Notch1.