Smad transcription factors lie at the core of one of the most versatile cytokine signaling pathways in metazoan biology-the transforming growth factor- (TGF) pathway. Recent progress has shed light into the processes of Smad activation and deactivation, nucleocytoplasmic dynamics, and assembly of transcriptional complexes. A rich repertoire of regulatory devices exerts control over each step of the Smad pathway. This knowledge is enabling work on more complex questions about the organization, integration, and modulation of Smad-dependent transcriptional programs. We are beginning to uncover self-enabled gene response cascades, graded Smad response mechanisms, and Smad-dependent synexpression groups. Our growing understanding of TGF signaling through the Smad pathway provides general principles for how animal cells translate complex inputs into concrete behavior.As evolution unfolded and multicellular life forms emerged, so did the need for tight control over the ability of individual cells to move, divide, differentiate, and organize. Intricate intercellular communication systems evolved to ensure the proper behavior of individual cells in the context of the whole organism. Among these forms of communication, one of the most prevalent involves secretory polypeptides that are recognized by membrane receptors coupled to transcriptional regulatory factors. With its 42 members in the human genome, seven in Drosophila, and four in Caenorhabditis elegans, the transforming growth factor- (TGF) family is one of the most prominent representatives of this class of molecules. TGF and its family members-the nodals, activins, bone morphogenetic proteins (BMPs), myostatins, anti-Muellerian hormone (AMH), and others-exert profound effects on cell division, differentiation, migration, adhesion, organization, and death.