Long noncoding RNA (LncRNA) SOX2 overlapping transcript (SOX2-OT) has been shown to serve an oncogenic role in human lung cancer, hepatocellular carcinoma, and gastric cancer. However, the clinical significance and biological function of lncRNA SOX2-OT in osteosarcoma are still unclear. LncRNA SOX2-OT expression was measured in osteosarcoma tissues and cell lines. Loss-of-function and gain-of-function studies were performed to observe the effects of lncRNA SOX2-OT on osteosarcoma cells proliferation, migration, invasion, and expressions of cancer stem cell biomarker. The relationship between lncRNA SOX2-OT and SOX2 was analyzed in osteosarcoma tissues and cells. Rescued-function studies were conducted to confirm the role of SOX2 in the regulation of lncRNA SOX2-OT in osteosarcoma cells migration, invasion, and expression of cancer stem cell biomarkers. In our results, lncRNA SOX2-OT expression was increased in osteosarcoma tissues and cell lines, and associated with malignant status and overall survival in osteosarcoma patients. LncRNA SOX2-OT regulated osteosarcoma cells proliferation, migration, invasion, and expression of cancer stem cell biomarkers. LncRNA SOX2-OT positively regulated SOX2 expression in osteosarcoma cells and positively associated with SOX2 expression in osteosarcoma tissues. The rescued-function studies suggested that SOX2 is necessary for lncRNA SOX2-OT induced osteosarcoma cells migration, invasion, and expression of cancer stem cell biomarkers. In conclusion, lncRNA SOX2-OT is a prognostic biomarker for osteosarcoma patients and serves an oncogenic role to regulate osteosarcoma cells migration, invasion, and expression of cancer stem cell biomarkers. © 2017 IUBMB Life, 69(11):867-876, 2017.