PRL is known to be a hormone carrying luteotropic action in rats and enhances progesterone secretion by suppressing 20 alpha-hydroxysteroid dehydrogenase (20 alpha HSD) activity in the corpus luteum. In this study, we investigated the effects of PRL and transforming growth factor-beta (TGF beta) on the 20 alpha HSD activity of rat luteal cells in vitro and examined whether TGF beta is involved in the luteotropic action of PRL. 20 alpha HSD activity of luteal cells (from midpseudopregnant rats), which had been suppressed by PRL in vivo, increased when the cells were cultured for 48 h without PRL addition. TGF beta (0.01, 0.1, 1.0, and 10.0 ng/ml) as well as PRL (2, 20, 200, and 2000 ng/ml) suppressed this increase in a dose-dependent manner. Furthermore, the suppressive effect of PRL on 20 alpha HSD activity was significantly attenuated by anti-TGF beta antibody. Activin, having homology with TGF beta in its chemical structure, also suppressed the increase in enzyme activity, although the effect was much less marked than that of TGF beta. TGF beta or PRL did not affect total progestin (progesterone plus 20 alpha-dihydroprogesterone) secretion, but induced reduction in 20 alpha-dihydroprogesterone secretion during a 48-h culture period, without any alteration of DNA or protein content per culture dish. These results indicate that TGF beta, like PRL, can suppress luteal 20 alpha HSD activity without producing nonspecific cell damage, and that the luteotropic action of PRL is at least in part mediated by TGF beta or an immunoreactive TGF beta-like substance(s).