Signals from the transforming growth factor  family members are transmitted in the cell through specific receptor-activated Smads and a common partner Smad4. Two Smad4 genes (␣ and /10, or smad4 and smad4.2) have been isolated from Xenopus, and conflicting data are reported for Smad4/10 actions in mesodermal and neural induction. To further understand the functions of the Smad4s in early frog development, we analyzed their activities in detail. We report that Smad10 is a mutant form of Smad4 that harbors a missense mutation of a conserved arginine to histidine in the MH1 domain. The mutation results in enhanced association of Smad10 with the nuclear transcription corepressor Ski and leads to its neural inducing activity through inhibition of bone morphogenetic protein (BMP) signaling. In contrast to Smad10, both Smad4␣ and Smad4 enhanced BMP signals in ectodermal explants. Using antisense morpholino oligonucleotides (MOs) to knockdown endogenous Smad4 protein levels, we discovered that Smad4 was required for both activin-and BMP-mediated mesodermal induction in animal caps, whereas Smad4␣ affected only the BMP signals. Neither Smad4 was involved directly in neural induction. Expression of Smad4-MO in early frog embryos resulted in reduction of mesodermal markers and defects in axial structures, which were rescued by either Smad4␣ or Smad4. Smad4␣-MO induced only minor deficiency at late stages. As Smad4, but not Smad4␣, is expressed at high levels maternally and during early gastrulation, our data suggest that although Smad4␣ and Smad4 may have similar activities, they are differentially utilized during frog embryogenesis, with only Smad4 being essential for mesoderm induction.Members of the TGF 2 superfamily of signaling molecules regulate diverse processes both during embryogenesis and in adult tissue homeostasis. In vertebrate embryos, TGF family ligands play crucial roles in generation and patterning of mesodermal and endodermal tissues, in gastrulation, neural induction and patterning, and organogenesis (1-5). Two branches of the growth factor family function differently in various processes. TGF/activin/nodal-like molecules are involved in induction and patterning of early mesendoderm and left-right axis specification, whereas bone morphogenetic proteins (BMPs) control early dorsoventral patterning in all germ layers and subsequently modulate the formation of multiple organ systems. In adults, one predominant function of the TGF signals is to regulate cell proliferation, and mutations in many signaling components of this pathway are associated with tumor formation (6, 7).TGF signals are transmitted through two types of transmembrane serine/threonine kinase receptors. In the ligand-induced receptor complex, the type II receptor phosphorylates and activates the type I receptor, which in turn phosphorylates Smad proteins, the cytoplasmic signal transducers. Growth factors from the TGF/activin/nodal subfamily act through their specific type I receptors (ALK4, -5, and -7) to activate Smad2 and ...