Activated forms of different Rho family members (CDC42, Rac1, RhoA, RhoB, and RhoG) have been shown to transform NIH 3T3 cells as well as contribute to Ras transformation. Rho family guanine nucleotide exchange factors (GEFs) (also known as Dbl family proteins) that activate CDC42, Rac1, and RhoA also demonstrate oncogenic potential. The faciogenital dysplasia gene product, FGD1, is a Dbl family member that has recently been shown to function as a CDC42-specific GEF. Mutations within the FGD1 locus cosegregate with faciogenital dysplasia, a multisystemic disorder resulting in extensive growth impairments throughout the skeletal and urogenital systems. Here we demonstrate that FGD1 expression is sufficient to cause tumorigenic transformation of NIH 3T3 fibroblasts. Although both FGD1 and constitutively activated CDC42 cooperated with Raf and showed synergistic focus-forming activity, both quantitative and qualitative differences in their functions were seen. FGD1 and CDC42 also activated common nuclear signaling pathways. However, whereas both showed comparable activation of c-Jun, CDC42 showed stronger activation of serum response factor and FGD1 was consistently a better activator of Elk-1. Although coexpression of FGD1 with specific inhibitors of CDC42 function demonstrated the dependence of FGD1 signaling activity on CDC42 function, FGD1 signaling activities were not always consistent with the direct or exclusive stimulation of CDC42 function. In summary, FGD1 and CDC42 signaling and transformation are distinct, thus suggesting that FGD1 may be mediating some of its biological activities through non-CDC42 targets.The Rho subfamily of Ras-related GTPases (14 mammalian members) controls multiple aspects of cell behavior, including cytoskeletal rearrangement, nuclear signaling, and cell growth (reviewed in reference 67). For example, CDC42 mediates the induction of actin microspikes and filopodia by bradykinin (26, 33), whereas Rac1 is required for growth factor-induced membrane ruffling and lamellipodia formation (47). In contrast, RhoA regulates the formation of actin stress fibers (46). In Swiss 3T3 cells, the assembly of these structures involves a cascade in which CDC42 activates Rac1, which in turn activates RhoA (33). Rho family proteins also have demonstrated roles in the regulation of gene expression as measured by (i) the transcriptional activation of the serum response factor (SRF) (19), (ii) activation of c-Jun NH 2 -terminal kinase (JNK) and its downstream target c-Jun (10, 32, 35), (iii) activation of the ternary complex factor protein Elk-1 (62), (iv) activation of p38/Mpk2 (63), and (v) regulation of expression from the cyclin D1 promoter (55). Finally, there is growing evidence that the deregulated expression of Rho family members has profound effects on the proliferative potential of cells. Activated derivatives of RhoA, RhoB, Rac1, and CDC42 cause oncogenic transformation when expressed in rodent fibroblast cell lines and may contribute to Ras-mediated malignant transformation (23,39,41,42,53,...