Myostatin, a new TGF-beta family member, is known as a muscle growth inhibitor, but its role in adipocyte development has not been studied. To test the role of Myostatin in 3T3-L1 preadipocyte differentiation, we treated cultured 3T3-L1 preadipocytes with Myostatin dissolved in 0.1% trifluoroacetic acid (TFA) during differentiation after they had become confluent. Myostatin treatment significantly decreased glycerol-3-phosphate dehydrogenase (GPDH) activity and oil Red-O staining compared to controls that did not receive Myostatin. Western blot analysis showed that the expression levels of CCAAT-enhancer binding protein a! (C/EBP alpha) and peroxisome proliferator-activated receptor gamma (PPAR gamma) were significantly decreased by Myostatin treatment (P < 0.05). However, the expression of C/EBP was not significantly changed by the treatment (P > 0.05). From RT-PCR result, the relative level of leptin mRNA in Myostatin-treated cells was not significantly different (P > 0.1) from the level in cells without Myostatin treatment. Our data show that Myostatin, a secreted protein from muscle, inhibits preadipocyte differentiation in 3T3-L1 cells, which is mediated, in part, by altered regulation of C/EBP a! and PPAR gamma.