Transforming growth factor β (TGF-β) and its many relatives are thought to play key roles in the control of cell proliferation and differentiation. In particular, the ability of TGF-β to induce growth arrest in epithelial cells has drawn considerable attention. The recent cloning of TGF-β receptors, which are considered to be prototypes of a new class of cell-surface receptors, has provided a first insight into how TGF-β signaling induces a variety of intracellular changes. Furthermore, recent advances in the characterization of the cell-cycle machinery have stimulated studies aimed at understanding how TGF-β signaling leads to growth arrest in the late G1 phase of the cell cycle.