The TGF-β pathway plays a vital role in development and disease and regulates transcription through a complex composed of receptor-regulated Smads (R-Smads) and Smad4. Extensive biochemical and genetic studies argue that the pathway is activated through R-Smad phosphorylation; however, the dynamics of signaling remain largely unexplored. We monitored signaling and transcriptional dynamics and found that although R-Smads stably translocate to the nucleus under continuous pathway stimulation, transcription of direct targets is transient. Surprisingly, Smad4 nuclear localization is confined to short pulses that coincide with transcriptional activity. Upon perturbation, the dynamics of transcription correlate with Smad4 nuclear localization rather than with R-Smad activity. In Xenopus embryos, Smad4 shows stereotyped, uncorrelated bursts of nuclear localization, but activated RSmads are uniform. Thus, R-Smads relay graded information about ligand levels that is integrated with intrinsic temporal control reflected in Smad4 into the active signaling complex.A small number of signaling pathways are used repeatedly throughout metazoan development, and their effects depend upon timing and context (1). Extensive biochemical characterization of these developmental signaling pathways has elucidated the sequence of events leading from ligand binding at the cell surface to regulation of transcription. Proper temporal control of pathway activity is crucial for normal development; however, the dynamic aspects of signaling are difficult to infer from population data and have lagged behind dissection of pathway components (2, 3). The few cases that have been examined have revealed rich dynamics that could not have been predicted from knowledge of the molecular interactions or from bulk measurements of protein modifications or mRNA levels (2-4).The TGF-β pathway is essential for developmental processes including mesoderm specification and dorsal-ventral axis formation and is dysregulated in a variety of cancers. It also is an important model for pathway crosstalk and dynamics, because it has two branches that share several components including receptors and transcription factors (5, 6). Binding of ligands specific to each branch to receptor complexes leads to the phosphorylation of branch-specific transcription factors: TGF-β/activin/nodal ligands induce the phosphorylation of Smad2/3, whereas bone morphogenic proteins (BMPs) activate Smad1/5/8. Phosphorylation of the receptor-activated Smads (R-Smads) from either branch of the pathway results in complex formation with Smad4, nuclear accumulation, and transcriptional activation.The prevailing model is that R-Smads carry pathway information with Smad4 mirroring their activity (7,8). R-Smad phosphorylation is necessary for the nuclear accumulation and transcriptional activity of both the R-Smads and Smad4. Termination of signaling often is presumed to be caused by either degradation or dephosphorylation of activated R-Smads (9, 10), and it further is assumed that the continuous pres...