Activin, a member of the transforming growth factor- superfamily, is an important modulator of follicle-stimulating hormone synthesis and secretion in the pituitary and plays autocrine/paracrine roles in the regulation of ovarian follicle development. From a microarray study on mouse ovarian granulosa cells, we discovered that the estrogen receptor  (ER) is inducible by activin. We previously demonstrated that estrogen suppresses activin gene expression, suggesting a feedback relationship between these two follicle-regulating hormones. The purpose of this study was to investigate fully activin A regulation of ER expression. Real time reverse transcription-PCR assays on cultured granulosa cells showed that both ER␣ and ER mRNAs were induced by activin A at 4, 12, and 24 h in a dose-responsive manner. Western blots confirmed an increase in their protein levels. Consistent with increased ER␣ and ER expression, activin A stimulated estradiol-induced estrogen response element promoter activity. Activin A stimulation of ER expression was a direct effect at the level of gene transcription, as it was not abolished by cycloheximide but was abolished by actinomycin D, and in transfected granulosa cells activin A stimulated ER␣ promoter activity. To investigate the effect of activin in vivo and, thus, its biological significance, we examined ER expression in inhibin transgenic mice that have decreased activin expression and discovered that these mice had decreased ER␣ and ER expression in the ovary. We also found that ER mRNA levels were decreased in Mü llerian inhibiting substance promoter (MIS)-Smad2 dominant negative mice that have impaired activin signaling through Smad2, and small interfering RNAs targeting Smad2 or Smad3 suppressed ER␣ promoter activation, suggesting that Smad2 and Smad3 are involved in regulating ER levels. Therefore, this study reveals an important role for activin in inducing the expression of ERs in the mouse ovary and suggests important interplay between activin and estrogen signaling.Activin and its functional antagonist inhibin were originally isolated from gonadal sources as endocrine factors regulating the synthesis and secretion of follicle-stimulating hormone by the pituitary gland (1-8). More recent studies have indicated that activin acts predominantly as a local paracrine and autocrine factor (9, 10). Consistent with the fact that activin is a member of the transforming growth factor- (TGF-) 2 superfamily, activin has a variety of functions and is involved in many physiological processes, including embryonic development, wound repair, inflammation, renal tubule morphogenesis, and neuroprotection. In the reproductive system, in addition to regulating gonadotropin release, activin and inhibin have been shown to play an important role in regulating the formation and development of ovarian follicles in the female (10 -15) and development and function of the testis in the male (16). Ovarian follicle formation and development is a dynamic process finely regulated by various intrinsic ...