Recent experiments in neural, skeletal, endothelial, and hematopoietic
tissues have provided new insights into the way members of the transf
orming growth factor-beta (TGF-beta) superfamily regulate cellular dif
ferentiation, TGF-beta s regulate the fate of multipotential stem cell
s instructively (in the neural crest) by regulating the expression or
function of tissue-specific transcription factors, as well as selectiv
ely On the mesenchyme) by regulating the expression of required growth
factors and their receptors. During skeletal development, TGF-beta s
have unique functions and act sequentially to modulate chondrocyte and
osteoblast differentiation. Responsiveness to TGF-beta s changes as c
ells differentiate and evidence now suggests that changes in TGF-beta
receptor profile may account for some of these differences. Drosophila
and transgenic mouse models are now providing useful insights into me
chanisms of TGF-beta action in vivo.