Both insulin and bone morphogenetic protein (BMP) signaling systems are important for adipocyte differentiation. Analysis of gene expression in BMP7-treated fibroblasts revealed a coordinated change in insulin signaling components by BMP7. To further investigate the cross talk between insulin and BMP signaling systems in brown adipogenesis, we examined the effect of BMP7 in insulin receptor substrate 1 (IRS-1)-deficient brown preadipocytes, which exhibit a severe defect in differentiation. Treatment of these cells with BMP7 for 3 days prior to adipogenic induction restored differentiation and expression of brown adipogenic markers. The high level of adipogenic inhibitor preadipocyte factor 1 (Pref-1) in IRS-1-null cells was markedly reduced by 3 days of BMP7 treatment, and analysis of the 1.3-kb pref-1 promoter revealed 9 putative Smad binding elements (SBEs), suggesting that BMP7 could directly suppress Pref-1 expression, thereby allowing the initiation of the adipogenic program. Using a series of sequential deletion mutants of the pref-1 promoter linked to the luciferase gene and chromatin immunoprecipitation, we demonstrate that the promoter-proximal SBE (؊192/؊184) was critical in mediating BMP7's suppressive effect on pref-1 transcription. Together, these data suggest cross talk between the insulin and BMP signaling systems by which BMP7 can rescue brown adipogenesis in cells with insulin resistance.Obesity and insulin resistance are two hallmark features of a larger collection of abnormalities called the metabolic syndrome. It is estimated that over 40 million people in the United States have the metabolic syndrome, and it is this cluster of abnormalities that creates risk for many of our most common medical conditions, including glucose intolerance, dyslipidemias, nonalcoholic fatty liver, cardiovascular disease, renal failure, Alzheimer's disease, and even some cancers (7,8,21,24). Adipose tissue plays an active role in systemic energy metabolism (14) and therefore contributes to the pathogenesis of the metabolic syndrome. There are two functionally different types of adipose tissue: white adipose tissue, which is specialized for the storage of excess energy in the form of triglycerides, and brown adipose tissue, which is completely dedicated to energy expenditure in response to cold or overfeeding. Given its tremendous capacity to dissipate chemical energy (4) and its recently demonstrated presence in adult humans (9,53,32,40,55,62), promoting brown fat differentiation and function provides an attractive approach to the treatment of obesity and related metabolic complications.Adipocyte differentiation is regulated by a network of hormones and growth factors (4, 14). Insulin signaling is known to play a pivotal role in both white and brown adipogenesis (38). Insulin receptor substrates (IRSs) function as the docking proteins coordinating hormone binding to the receptor and downstream signaling events (56). There are four members of the IRS protein family, and each has a unique and complementary function ...