A missense mutation of Smad2 identified in cancer cells was reconstructed on the corresponding residue of Smad3, This mutant, Smad3D407E, was not phosphorylated by the constitutively active form of type I receptor for transforming growth factor-beta (TGF-beta), and inhibited the phosphorylation of co-expressed wild-type Smad2 and Smad3, This mutant also had a dominant negative effect on the growth inhibition of HaCaT cells and on the expression of p3TP-lux reporter gene induced by TGF-beta. However, it did not alter the phosphorylation of Smad1 induced by the constitutively active form of the bone morphogenetic protein type IA receptor. These findings showed that a single missense mutation in Smad3 could specifically block TGF-beta signals by preventing activation of both Smad2 and Smad3, (C) 1998 Federation of European Biochemical Societies.