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Skeletal muscle development is spotlighted in mammals since it closely relates to animal health and economic benefits to the breeding industry. Researchers have successfully unveiled many regulatory factors and mechanisms involving myogenesis. However, the effect of N⁶-methyladenosine (m⁶A) modification, especially demethylase and its regulated genes, on muscle development remains to be further explored. Here, we found that the typical demethylase FTO (fat mass- and obesity-associated protein) was highly enriched in goats’ longissimus dorsi (LD) muscles. In addition, the level of m⁶A modification on transcripts was negatively regulated by FTO during the proliferation of goat skeletal muscle satellite cells (MuSCs). Moreover, a deficiency of FTO in MuSCs significantly retarded their proliferation and promoted the expression of dystrophin-associated protein 1 (DAG1). m⁶A modifications of <i>DAG1</i> mRNA were efficiently altered by FTO. Intriguingly, the results of DAG1 levels and its m⁶A enrichment from FB23-2 (FTO demethylase inhibitor)-treated cells were consistent with those of the FTO knockdown, indicating that the regulation of FTO on DAG1 depended on m⁶A modification. Further experiments showed that interfering FTO improved m⁶A modification at site DAG1-122, recognized by Insulin-like growth factor 2 mRNA-binding protein 1 (IGF2BP1) and consequently stabilized <i>DAG1</i> transcripts. Our study suggests that FTO promotes the proliferation of MuSCs by regulating the expression of DAG1 through m⁶A modification. This will extend our knowledge of the m⁶A-related mechanism of skeletal muscle development in animals.