MEMBERS of the Hedgehog family of secreted proteins control a number o
f important inductive interactions in the development of both vertebra
tes and Drosophila(1), but little is known about the ways in which the
ir signalling activities are transduced. In Drosophila, hedgehog is on
e of the segment-polarity genes, mutations of which disrupt the patter
n and polarity of individual embryonic segments(2) and their adult der
ivatives(3); several of these genes have been implicated in transducti
on of the hedgehog signal(4-6). Here we show that the segment-polarity
gene smoothened is required for the response of cells to hedgehog sig
nalling during the development of both the embryonic segments and imag
inal discs. Sequence analysis of the smoothened transcription unit rev
eals a single open reading frame encoding a protein with seven putativ
e transmembrane domains. This structure is typical of G-protein-couple
d receptors, suggesting that the Smoothened protein may act as a recep
tor for the Hedgehog ligand.