We reported previously that MATLyLu rat prostate cancer cells engineered to overproduce transforming growth factor beta 1 (TGF beta 1) produce larger, more metastatic tumors in vivo. We recognized that this ability of TGF beta 1 to act as a positive modulator of prostate tumor behavior might be due to effects of TGF beta 1 on the host and/or on the tumor cells. In this study we demonstrated that the cells themselves respond to endogenously produced TGF beta 1, and that the adenylyl cyclase (AC)-cAMP pathway is affected. TGF beta 1-overproducing cells had lower membrane AC activity, lower intracellular cAMP content, and a lower Gs alpha protein level than did control cells. Prostate cancer cells were growth inhibited by 8-bromo-cAMP or forskolin, agents that elevate intracellular cAMP. Thus, TGF beta 1 overproduction affects the phenotype of the tumor cells, deliberate activation of endogenously produced latent TGF beta 1 is not required (indicating that the cells themselves are capable of activating latent TGF beta 1), and TGF beta 1 overproduction lowers the cellular concentration of the growth inhibitor cAMP. Therefore, TGF beta 1 overproduction could affect tumor behavior in vivo in part via a direct effect on the tumor cells.