Correct development of biological systems requires strict regulation of cellular processes such as cell migration, proliferation and differentiation. The transforming growth factor beta (TGF-?) pathway is a major player in these processes, however its role in neuronal migration and axon guidance is not fully understood. We discovered that SMA-6, a TGF-? receptor type I homologue in Caenorhabditis elegans acts from the hypodermis to control neuronal migration and axon guidance of the hermaphrodite-specific neurons (HSNs). Conversely, DAF-4 which is the sole TGF-? receptor type II homologue is not required for HSN development. In the canonical TGF-? pathway, the type I receptor requires phosphorylation by the type II receptor in order to function. However, we show that a TGF-? receptor type I can act independently of a TGF-? type II receptor in neuronal development, and hence identify a non-canonical mode of action. We also found that TIG-2, the human bone morphogenetic protein-7 (BMP7) homologue, binds to and functions genetically upstream of SMA-6 to direct HSN guidance. Further, the SMAD transcription factors, SMA-2, SMA-3 and SMA-4, act downstream of SMA-6 to regulate HSN development. To identify TGF-? pathway target genes important for regulating HSN development, we conducted RNA sequencing to compare the transcriptomes of wild-type,
sma-6 and
sma-3 mutants. Differential expression analysis identified 13 candidate genes some of which have SMAD binding sites. Finally, we found that manipulation of specific candidate SMAD target genes supress HSN developmental defects in
sma-3 mutant animals, suggesting the mechanism through which TGF-? signalling regulates neuronal guidance.