The adipocyte plays a critical role in energy balance. Adipose tissue
growth involves an increase in adipocyte size and the formation of new
adipocytes from precursor cells. For the last 20 years, the cellular
and molecular mechanisms of adipocyte differentiation have been extens
ively studied using preadipocyte culture systems. Committed preadipocy
tes undergo growth arrest and subsequent terminal differentiation into
adipocytes. This is accompanied by a dramatic increase in expression
of adipocyte genes including adipocyte fatty acid binding protein and
lipid-metabolizing enzymes. Characterization of regulatory regions of
adipose-specific genes has led to the identification of the transcript
ion factors peroxisome proliferator-activated receptor-gamma (PPAR-gam
ma) and CCAAT/enhancer binding protein (C/EBP), which play a key role
in the complex transcriptional cascade during adipocyte differentiatio
n. Growth and differentiation of preadipocytes is controlled by commun
ication between individual cells or between cells and the extracellula
r environment. Various hormones and growth factors that affect adipocy
te differentiation in a positive or negative manner have been identifi
ed. In addition, components involved in cell-cell or cell-matrix inter
actions such as preadipocyte factor-1 and extracellular matrix protein
s are also pivotal in regulating the differentiation process. Identifi
cation of these molecules has yielded clues to the biochemical pathway
s that ultimately result in transcriptional activation via PPAR-gamma
and C/EBP. Studies on the regulation of the these transcription factor
s and the mode of action of various agents that influence adipocyte di
fferentiation will reveal the physiological and pathophysiological mec
hanisms underlying adipose tissue development.