Summary: Transforming growth factor beta regulates proliferation and differentiation of various types of cells. It plays an important role in embryo development and in homeostasis of adult tissues. The transforming growth factor beta binds to specific transmembrane receptors on the cell surface. The receptors have a serin/threonin kinase activity and transduce signal through Smad proteins. Upon ligand stimulation, Smad proteins translocate into the nucleus where they function as components of transcription complexes and affect the expression of target genes. Tumor cells often escape from the antiproliferative effect of the transforming growth factor beta as a result of mutational inactivation or dysregulated expression of genes for components of its signaling pathway. Mutations in the genes for type I and II transforming growth factor beta receptors and in the genes for Smad proteins dominate in the loss of the cells sensitivity to the antiproliferative effect of the transforming growth factor beta. Several other proteins and signaling pathways also contribute to the transforming growth factor beta signaling. The profound understanding of the transforming growth factor beta pathway may improve cancer prevention and treatment.