Abstract Mechanical forces shape cell fate decisions during development and regeneration in many systems. Epithelial lumen volume changes, for example, generate mechanical forces that can be perceived by the surrounding tissue and integrated into cell fate decisions. Similar behavior occurs in regenerating Hydra tissue spheroids, where periodic osmotically driven inflation and deflation cycles generate mechanical stimuli in the form of tissue stretching. Using this model, we investigate how such mechanical input guides the de novo formation of differentiated body parts. We show that the expression of the organizer-defining factor Wnt3 functions as a quantitative readout of cellular stretching and, when supplied externally, enables successful regeneration without mechanical stimulation. This finding represents a previously undescribed cellular mechanism for converting mechanical stimuli to a biochemical signaling readout and guiding cell fate transitions. It also elucidates the role of mechanical oscillations in Hydra regeneration, which long remained unclear. The presence the Wnt/mechanics interplay in Hydra and its relatives underscores the ancient evolutionary history of this crosstalk, possibly extending back to the first metazoans. Since Wnt signaling crosstalks with cellular mechanics in various developmental and disease contexts, it can also represent a conserved feature of this signaling pathway.