Paracrine and autocrine growth factors can affect many different aspects of ovarian follicle development. Many members of the transforming growth factor β (TGFβ) family of growth factors and their receptors are expressed in developing follicles. However, the presence and function of the family of the TGFβ signaling molecules known as Smads have not been evaluated during follicle development. We have demonstrated that two Smad family members that function as mediators for both activin and TGFβ are expressed in granulosa cells of preantral follicles but not in large antral follicles. Smad2 expression, but not Smad3 expression, returns in luteal cells. Both Smad2 and Smad3 are translocated to the nucleus of granulosa cells in response to treatment with either TGFβ or activin. However, Smad2 is more responsive to activin stimulation, and Smad3 is more responsive to TGFβ stimulation. Stage-specific expression and differing ligand sensitivity of signaling molecules may work together to allow different effects of TGFβ family ligands using the same signaling pathways over the course of follicular development.