The Notch genes encode single-pass transmembrane receptors that transduce t
he extracellular signals responsible for cell fate determination during sev
eral steps of metazoan development. The mechanism by which extracellular si
gnals affect gene transcription and ultimately cell fate decisions is begin
ning to emerge for the Notch signalling pathway. One paradigm is that ligan
d binding to Notch triggers a Presenilin1-dependent proteolytic release of
the Notch intracellular domain from the membrane(1), resulting in low amoun
ts of Notch intracellular domain which form a nuclear complex with CBF1/Su(
H)/Lag1 to activate transcription of downstream targets(2). Not all observa
tions clearly support this processing model, and the most rigorous test of
it is to block processing in vivo and then determine the ability of unproce
ssed Notch to signal. Here we report that the phenotypes associated with a
single point mutation at the intramembranous processing site of Notch1, Val
1,744-->Gly, resemble the null Notch1 phenotype(3,4). Our results show that
efficient intramembranous processing of Notch1 is indispensable for embryo
nic viability and proper early embryonic development in vivo.