Id proteins are known as negative regulators of differentiation in various cell types. In this report, we show that the Id-1 gene was down-regulated during the development of rat liver. No Id-1 transcripts were detected in terminal differentiated hepatocytes. We have studied Id-1 expression in proliferating hepatocytes using an in vivo model of liver regeneration after partial hepatectomy and an in vitro growth factor-stimulated hepatocyte culture system. Strong activation of Id-1 was observed in mid-late G1 of the hepatocyte cell cycle at a time corresponding to a mitogen restriction point. These observations suggest that Id-1 is involved in the control of proliferation and differentiation in liver cells.