The transforming growth factor (TGF)-beta/Smad signaling pathway is thought to play a major role in keloid formation. This study showed that the expression of inhibitory Smad7 was significantly down regulated in keloid compared with normal scar (P < 0.05) and normal skin (P < 0.05), however, no significant difference of Smad2 , 3 and the phosphorylation of Smad2,3. But the mechanism of reduced expression of Smad7 is unclear. Sp1 binding sites were found in Smad7 promotor by bioinformatics system analysis, then, the expression of TIEG1 mRNA and proteins in keloids, in normal skin and in normal scars tissues and fibroblasts were investigated. Dermal fibroblasts were obtained from biopsies of keloids, normal scars and normal skin. Fibroblasts were cultured in vitro. The expression of TIEG1 mRNA was analysed by RT-PCR and protein expression was determined by Western blot analysis. The results demonstrated increased mRNA and protein expressions of TIEG1 in keloid tissue and fibroblasts as compared to normal scar tissues and fibroblasts (P < 0.05) and normal skin tissues and fibroblasts (P < 0.05). It suggested that TIEG1 might play a significant role to the decreased expression of the inhibitory Smad7 in keloid. Further investigation is necessary to illuminate the mechanism of TIEG1 regulating Smad7.