Epidermal <em>growth</em> <em>factor</em> receptor (EGFR) ligands are fundamental regulators of epithelial <em>growth</em>, differentiation, and neoplastic transformation. In addition to being potent mitogens for murine epidermal <em>keratinocytes</em> in vitro, transforming <em>growth</em> <em>factor</em> alpha (TGF alpha) and EGF elicit distinctive changes in keratin expression: Ca(<em>2</em>+)-mediated induction of the differentiation-specific keratins K1 and K10 is blocked, while simple epithelial keratins K8 and K18 are expressed aberrantly (C. Cheng et al., Cell <em>Growth</em>, & Differ., 4: 317-3<em>2</em>7, 1993). We have evaluated several additional <em>growth</em> <em>factors</em> to determine the specificity of this response for EGFR ligands. TGF alpha, <em>keratinocyte</em> <em>growth</em> <em>factor</em> (KGF), and acidic fibroblast <em>growth</em> <em>factor</em> (aFGF), but not basic fibroblast <em>growth</em> <em>factor</em> (bFGF) or insulin-like <em>growth</em> <em>factor</em> type I, block Ca(<em>2</em>+)-mediated expression of K1 while inducing K8. Since KGF and aFGF (but not bFGF) are ligands for the KGF receptor (KGFR), we explored the possibility that the TGF alpha/EGFR pathway is an intermediary in signaling through the KGFR. TGF alpha mRNA was increased in cells treated with KGF, aFGF, or TGF alpha but not bFGF or insulin-like <em>growth</em> <em>factor</em> type I. Similar changes were detected at the protein level; TGF alpha in conditioned medium (CM) from control, KGF-, TGF alpha-, and aFGF-treated cultures was 54 (+/- 8, SEM), 365 (+/- 50), 146 (+/- <em>2</em>0), and 1<em>2</em>0 (+/- 50) pg/ml, respectively. KGF and TGF alpha also increased expression of cell-associated TGF alpha measured in <em>keratinocyte</em> lysates. KGF increased TGF alpha secretion and mRNA levels in human as well as mouse <em>keratinocytes</em>. CM from KGF-treated cultures stimulated cell <em>growth</em> when added to cultures of normal <em>keratinocytes</em>. Preincubation with neutralizing antibodies to both TGF alpha and KGF, but not KGF antibody alone, blocked cell <em>growth</em> in cultures treated with KGF CM, suggesting that the predominant <em>keratinocyte</em> mitogen in KGF CM is TGF alpha. In support of this hypothesis, treatment of <em>keratinocytes</em> for 5 min with either KGF CM or purified TGF alpha resulted in EGFR autophosphorylation. Furthermore, after approximately <em>2</em>4 h, KGF as well as TGF alpha induced EGFR down-regulation based on Western blot analysis and 1<em>2</em>5I-EGF binding. Induction of TGF alpha in KGF-treated <em>keratinocytes</em>, coupled to activation and down-modulation of the EGFR, suggests that TGF alpha may be a proximal effector of KGF action for at least certain aspects of epidermal <em>growth</em> and differentiation.