TGF-b is a potent pleiotropic factor that promotes small intestinal cell differentiation. The role of microRNAs in the TGF-b induction of intestinal epithelial phenotype is largely unknown. We hypothesized that microRNAs are functionally involved in TGF-b-induced intestinal cell growth. In this study, TGF-b caused a morphological change of IEC-6 cells and stimulated expression of the epithelial cell markers alkaline phosphatase, villin, and aminopeptidase N. By global microRNA profiling during TGF-b-induced intestinal crypt cell (IEC-6) differentiation, we identified 19 differentially expressed microRNAs. We showed by real-time Q-PCR that miR-146b expression increased rapidly after TGF-b treatment; sequence analysis and in vitro assays revealed that miR146b targets SIAH2, an E3 ubiquitin ligase, with decreased protein expression upon IEC-6 cell differentiation. Transfection of miR-146b inhibitor before TGF-b treatment blocked the down-regulation of SIAH2 in response to TGF-b. Moreover, SIAH2 over-expression during TGF-b treatment caused a significant decrease in Smad7 protein expression in IEC-6 cells. Furthermore, activation of the ERK1/2 pathway is active in the up-regulation of miR146b by TGF-b. These findings suggest a novel mechanism whereby TGF-b signaling during IEC-6 cell differentiation may be modulated in part by microRNAs, and we propose a key role for miR-146b in the homeostasis of growth factor TGF-b signaling through a negative feedback regulation involving down-regulation of SIAH2 repressed Smad7 activities.