Background. Cyclosporine (CsA) has been shown to induce the expression of transforming growth factor (TGF)-beta both in vitro and in vivo. It is hypothesized that the efficacy as well as the side effects of CsA are mediated by TGF-P. This study was planned to investigate whether anti-TGF-p mitigated and TGF-P reproduced the in vivo effects of CsA to directly prove this hypothesis, Methods. B6AF(1), (H2(b/k.d)) mice were divided into groups and received the following: CsA, vehicle (olive oil), CsA + anti-TGF-pl antibody, TGF-beta 1, or vehicle phosphate-buffered saline/bovine serum albumin. All studies were carried out at 10 and 28 days after the last day of CsA administration with the exception of the exogenous TGF-P experiments, which were performed 5 days after exogenous TGF-P administration. The efficacy was studied by the anti-CD3-induced ex vivo proliferation of splenocytes measured by [H-3]thymidine uptake; TGF-P protein levels were quantified by ELISA, TG;F-P, collagen, and fibronectin gene expression was studied using reverse transcriptasepolymerase chain reaction, and histopathological analysis was made on periodic acid-Schiff- and trichrome C-stained thin kidney sections. Results. CsA treatment resulted in decreased ex vivo proliferation of splenocytes, an increase in TGF-P protein in the sera, and renal histopathological changes including tubular swelling, vacuolization, thrombotic microangiopathy, and increased expression of TGF-P, collagen and fibronectin genes. All of these findings were blocked by anti-TGF-p antibody. Conclusion. The study demonstrates the in vivo modulation of the effects of CsA by manipulating TGF-P levels and suggests that TGF-P at least in part mediates CsA's beneficial and detrimental effects.