Notch signaling regulates multiple cell fate decisions by hematopoietic precursors. To address whether different amounts of Notch ligand influence lineage choices, we cultured murine bone marrow lin(-)Sca-1(+)c-kit(+) cells with increasing densities of immobilized Delta1(ext-IgG) consisting of the extracellular domain of Delta1 fused to the Fc domain of human IgG(1). We found that relatively lower densities of Delta1(ext-IgG) enhanced the generation of Sca-1(+)c-kit(+) cells, Thy1(+)CD25(+) early T cell precursors, and B220(+)CD43(+/lo) cells that, when cocultured with OP9 stroma cells, differentiated into CD19(+) early B cell precursors. Higher densities of Delta1(ext-IgG) also enhanced the generation of Sca-1(+)c-kit(+) precursor cells and promoted the development of Thy1(+) CD25(+) cells, but inhibited the development of B220(+)CD43(+/lo) cells. Analyses of further isolated precursor populations suggested that the enhanced generation of T and B cell precursors resulted from the effects on multipotent rather than lymphoid-committed precursors. The results demonstrate the density-dependent effects of Delta1 on fate decisions of hematopoietic precursors at multiple maturational stages and substantiate the previously unrecognized ability of Delta1 to enhance the development of both early B and T precursor cells.