To accommodate growth, insects must periodically replace their chitin/protein-rich cuticles in a process called “molting or ecdysis”. During each molt cycle, a new cuticle is deposited simultaneously with degradation of the chitinous procuticle of the old one by molting fluid enzymes including epidermal chitinases. Here, we demonstrated a novel role for an endochitinase, TcCHT7, from the red flour beetle, Tribolium castaneum, belonging to a subfamily (Group III) that contain two catalytic domains, in organizing chitin in the newly forming cuticle rather than in degrading chitin present in the prior one. The conservation of CHT7-like proteins among many insect and other arthropod species indicates a critical role for the Group III class of chitinases in the higher ordered organization of chitin fibers for development of the structural integrity of many invertebrate exoskeletons.