The effect of transforming growth factor-alpha (TGF alpha) on granulosa cell differentiation, as assessed by the acquisition of aromatase activity, was evaluated in vitro by using a primary culture of rat granulosa cells. Harvested from immature, diethylstilbestrol-treated rats, granulosa cells were cultured under serum-free conditions for 72 hr in the presence of saturating concentrations (10(-7)M) of aromatase substrate androstenedione with or without the specific experimental agents. Basal aromatase activity, as assessed by the generation of radioimmunoassayable estrogen was negligible, remaining unaffected by treatment with TGF alpha (10 ng/ml) by itself. Whereas treatment with follicle-stimulating hormone (FSH) resulted in a substantial increase in the extent of aromatization, concurrent treatment with TGF alpha (10 ng/ml) resulted in significant (P less than 0.05), yet reversible inhibition (78 +/- 5.6%) of FSH action. Significantly, this effect of TGF alpha could not be accounted for by a decrease in cellular viability or plating efficiency nor by a decrease in the number of cells or their DNA content. Although independent of the FSH dose employed, the TGF alpha effect proved dose- and time-dependent, with an apparent median inhibitory dose (EC50) of 0.33 +/- 0.04 ng/ml, and a minimal time requirement of 48 hr. Capable of substantial inhibition of the forskolin-stimulated accumulation of extracellular adenosine 3', 5' cyclic monophosphate (cAMP) and estrogen, TGF alpha had a measurable albeit limited effect on N6, 2-'O-Dibutyryladenosine 3':5'-cyclic monophosphate-supported estrogen production. Relative potency comparison revealed epidermal growth factor (EGF; EC50 = 0.24 +/- 0.03 ng/ml) and TGF alpha to be virtually equipotent as regards the attenuation of FSH-stimulated estrogen biosynthesis. Taken together, our findings indicate that TGF alpha, like EGF, acting at subnanomolar concentrations, is capable of attenuating the FSH-stimulated (but not basal) accumulation of estrogen. This effect of TGF alpha proved time- and dose-dependent, involving virtually complete neutralization of FSH action at site(s) both proximal and distal to cAMP generation. As such, these findings provide yet another example of the remarkable qualitative and quantitative similarities between EGF and TGF alpha, thereby reaffirming the prospect that ligands of the EGF/TGF alpha receptor may play a modulatory role in the course of granulosa cell ontogeny.