Genetic studies implicate Fgf10-Fgfr2 signaling as a critical regulator of bud morphogenesis in the embryo. However, little is known about the transcriptional targets of Fgf10 during this process. Here we identified global changes in gene expression in lung epithelial explants undergoing FGF10-mediated budding in the absence of other growth factors and mesenchyme. Targets were confirmed by their localization at sites where endogenous Fgf10 signaling is active in embryonic lungs and by demonstrating their induction in intact lungs in response to local application of FGF10 protein. We show that the initial stages of budding are characterized by marked up-regulation of genes associated with cell rearrangement and cell migration, inflammatory process, and lipid metabolism but not cell proliferation. We also found that some genes implicated in tumor invasion and metastatic behavior are epithelial targets of Fgf10 in the lung and other developing organs that depend on Fgf10-Fgfr2 signaling to properly form. Our approach identifies Fgf10 targets that are common to multiple biological processes and provides insights into potential mechanisms by which Fgf signaling regulates epithelial cell behavior.Signaling by fibroblast growth factor 10 (Fgf10) 1 and its receptor Fgfr2b is critical for bud morphogenesis in many developing structures. During organogenesis, Fgf10 is expressed by the mesoderm from where it diffuses to activate Fgfr2b in adjacent endodermal or ectodermal-derived cells and induce budding (1). Disruption of Fgf10-Fgfr2b signaling is lethal at birth and results in multiple organ defects. Abnormalities in Fgf10-or Fgfr2b-deficient mice include agenesis of the anterior pituitary gland, lung, thyroid, salivary gland, and limb and dysgenesis of inner ear, teeth, skin, pancreas, kidney, palate, and hair follicles (2-5). Fgf10 expression is also required for adipocyte differentiation and wound healing (6 -8).In the developing respiratory tract of the mouse, Fgf10 is first detected at embryonic (E) day 9.5 during primary bud formation. Subsequently, during branching morphogenesis (E10.5-16.5), Fgf10 is dynamically expressed in the distal lung mesenchyme at the prospective sites of budding (9, 10). The spatial and temporal distribution of Fgf10 is essential for patterning of lung epithelial tubules.Bud morphogenesis involves major changes in cytoskeletal organization, cell adhesion, migration, invasion, and proliferation among other activities. Little is known about the targets of Fgf10-Fgfr2b signaling in the lung epithelium when buds are forming. Although gene expression in the developing lung has been characterized by several reports, most studies were performed in the intact organ. Using whole lungs to identify targets that result primarily from Fgf10-Fgfr2b activation is difficult, because in the mesoderm, Fgf10 is present with several other endogenous signals such as Wnts, hepatocyte growth factor, or epidermal growth factor.Previous studies have shown that recombinant FGF10 is able to support bud morphogenesi...