Abstract Ketone bodies are an alternate fuel source generated by the liver in response to low carbohydrate availability in neonates and after starvation and exhausting exercise in adulthood. However, the mechanisms regulating effective ketone body utilization in peripheral organs are poorly understood. The postnatal alternative splicing generates muscle-specific MEF2D⍺2 protein isoform of the transcription factor MEF2D. Here, we discovered that MEF2D⍺2 exon knockout (Eko) mice displayed reduced running capacity and muscle expression of all three ketolytic genes, BDH1, OXCT1, and ACAT1. Consistently, MEF2D⍺2 Eko mice showed a slower clearance of blood ketone bodies in a tolerance test. MEF2D⍺2 Eko mice displayed higher ketone body levels immediately after exercise, during the recovery period, and after feeding on a ketogenic diet. Thus, we identified MEF2D⍺2 as a crucial regulator of skeletal muscle ketone body oxidation and exercise capacity. Our results also underscore the effect of muscle-specific alternative splicing at the whole organism level.