RNA interference has become a powerful tool for silencing of gene expression in mammals and plants. To determine the effect of Smad3 on transforming growth factor-beta signaling, we constructed a small interfering RNA (siRNA) targeted to Smad3. This siRNA inhibited expression of the endogenous Smad3 leading to the prevention of nuclear localization of Smad3. Further, Smad3 siRNA prevented not only anti-proliferative activity of TGF-beta1 but also TGF-beta1-inducible promoter activity.