Sma and MAD-related protein 3 (Smad3) plays a key role in the intracellular signaling of the transforming growth factor-beta (TGF-beta) family of growth factors, which exhibits a diverse set of cellular responses, including cell proliferation and differentiation. Smad3 has the N-terminal Mad homology (MH) 1 and the C-terminal MH2 domains. MH2 domain is essential for the TGF-beta-induced transcriptional activation, because the MH2 domain of Smad3 is involved in the interactions with several transcriptional cofactors as well as the type I TGF-beta receptor (T beta R-I). In this study, we examined the roles for four lysine residues (Lys-333, Lys-341, Lvs-378, and Lys-409) in the Smad3 MH2 domain. Mutation of the lysine (K)-378 to arginine (R) (K378R) abolished the interaction with T beta R-I, phosphorylation, transcriptional activation by an active T beta R-I. The K341R mutant also failed to stimulate TGF-beta-induced transcription by resting in the cytoplasm. However, the K409R mutant showed a higher transcriptional activity by stronger interactions with coactivators, such as p300/CBP. Furthermore, both the K341R and K378R mutants act as dominant-negative inhibitors in the TGF-beta-induced target genes of endogenous TGF-beta signal. Thus, the lysine residues of Smad3 MH2 domain play important roles in the transcriptional regulation of TGF-beta signals through T beta R-I. (c) 2005 Federation of European Biochemical Societies. Published by Elsevier B.V. All rights reserved.