Intercellular signaling through the Notch/LIN-12 transmembrane recepto
rs regulates growth and differentiation during animal development. Mor
eover, defects in the conserved Notch/LIN-12 pathway are linked to hum
an diseases. Here, we review models for two key steps in Notch/LIN-12
signaling: ligand-mediated activation of the receptor and receptor-med
iated activation of transcription. Ligand binding appears to permit pr
oteolysis of the receptor; as a result, the receptor's intracellular d
omain can enter the nucleus and function as a transcriptional co-activ
ator.