We have found the presence of protein factor in rat adipose tissue which permits the proliferation of 3T3-L1 and Ob1771 preadipocytes cultured in a completely defined serum-free medium containing only progression factors [epidermal growth factor (EGF) and insulin] as growth factors. This mitogenic activity of the protein factor was not detected in various other cell lines, in particular, Swiss 3T3 cells which could proliferate in response to a competent factor [platelet-derived growth factor (PDGF) or fibroblast growth factor (FGF)] in the same serum-free medium. This activity of the factor was heat- and pronase-unstable, and reductant-stable, and the apparent molecular weight of the factor was about 20,000. These results strongly suggest that the protein factor is different from PDGF or FGF and contributes to the formation of new adipocytes by specifically stimulating the proliferation of preadipocytes, acting like competent factor.