Prolactin (PRL), interacting with other hormones from the pituitary, gonad, and placenta, activates speci®c signals that drive the appropriately timed morphological and functional development of the mammary gland. A mouse model of isolated PRL de®ciency (PRL 7/7 ) was created by gene disruption in an e ort to further understand the molecular basis of mammary gland development and breast cancer. Whereas primary ductal growth was normal in PRL 7/7 mice, ductal arborization was minimal (branches/mm 2 =1.5+0.5), and lobular budding was absent. Replacement therapy with PRL injections stimulated a modest degree of lobular budding and ductal arborization (3.75+0.9). Pituitary transplants to the kidney capsule of PRL 7/7 mice restored lobular budding and ductal arborization, to the full extent of that seen in control animals (20.3+5.5). Pregnancy, established by mating progesterone-treated PRL 7/7 females with PRL 7/7 males, led to complete morphological development of the mammary gland, appropriate to the gestational stage. PRL treatment stimulated tyrosine phosphorylation and DNA binding activity of Stat5a, but not Stat1 in PRL 7/7 or PRL +/7 females, and Stat5a, but not Stat1, was elevated by estradiol within 24 h. PRL-de®cient mice were crossed with mice expressing a dominant oncogene (polyoma middle-T antigen driven by the MMTV promoter, PyVT mice). Palpable (1 mm 3 ) tumors were detected an average of 9 days earlier in hormonally normal females (PRL +/7 :PyVT) compared with littermates that were PRL-de®cient (PRL 7/7 :PyVT). The growth rate of PyVT-induced tumors was 30% faster in PRL +/7 , than in PRL 7/7 females.