This is the first report that characterizes specific inhibitor of Smad3 (SIS3) as a potent and selective inhibitor of Smad3 function. In the reporter assay, the increased luciferase activity of p3TP-lux by the overexpression of constitutively active form of ALK-5 was abrogated by the treatment with SIS3 in a dosedependent manner. Immunoprecipitation revealed that SIS3 attenuated the transforming growth factor (TGF)-1-induced phosphorylation of Smad3 and interaction of Smad3 with Smad4. On the other hand, this reagent did not affect the phosphorylation of Smad2. Thereafter, we evaluated the ability of SIS3 in the suppression of the TGF-1-induced type I procollagen up-regulation in human dermal fibroblasts. We found that the addition of SIS3 attenuated the effects of TGF-1 by reducing the transcriptional activity. SIS3 also inhibited the myofibroblast differentiation of fibroblasts by TGF-1. Moreover, we demonstrated that SIS3 completely diminished the constitutive phosphorylation of Smad3 as well as the up-regulated type I collagen expression in scleroderma fibroblasts. Together, our study suggested that SIS3 is a useful tool to evaluate the TGF--regulated cellular mechanisms via selective inhibition of Smad3.Transforming growth factor (TGF)-1 plays a critical role in a variety of biological processes, including proliferation, differentiation, extracellular matrix production, and apoptosis. The diverse cellular responses elicited by TGF-1 are triggered by the activation of serine/threonine kinase TGF- receptors. On activation by TGF-1 or related ligands, signaling from the receptors to the nucleus is mediated by phosphorylation of cytoplasmic mediators called Smads. The receptor-associated Smads, such as Smad2 and Smad3, interact directly with, and are phosphorylated by, activated TGF- receptor type I (Nakao et al., 1997). They are ligandspecific and form, on phosphorylation, heteromeric complexes with Smad4. The latter functions as a common mediator for all Smad pathways. These complexes then are translocated into the nucleus, where they function as transcription factors, possibly in association with other proteins, such as Sp1. The third group of Smad proteins, the inhibitory Smads such as Smad6 or Smad7, prevents phosphorylation and/or nuclear translocation of receptor-associated Smads.TGF-1 has been implicated in the development of fibrotic condition, including skin, lung, or liver. Systemic sclerosis or scleroderma is an acquired disorder that typically results in fibrosis of the skin and internal organs. Fibroblasts from affected scleroderma skin cultured in vitro produce excessive amounts of extracellular matrix (ECM), various collagens, mainly type I and III collagens, and display increased transcription of corresponding genes (Hitraya and Jimenez, 1996). Many of the characteristics of scleroderma fibroblasts resemble those of normal fibroblasts stimulated by TGF-1 (LeRoy et al., 1989), suggesting that activation of dermal fibroblast in scleroderma may be a result of stimulation by aut...