This gene encodes a secreted ligand of the TGF-beta superfamily, which binds TGF-beta receptors to activate SMAD transcription factors that regulate gene expression. The preproprotein is processed into a latency-associated peptide (LAP) and a mature peptide. It exists in latent form (mature peptide homodimer, LAP homodimer, and latent TGF-beta binding protein) or active form (mature peptide homodimer). The mature peptide may also form heterodimers with other TGF-beta family members. This protein regulates cell proliferation, differentiation, and growth, and modulates the activation of other growth factors, including interferon gamma and TNF-alpha. It is often upregulated in tumors, and mutations in this gene cause Camurati-Engelmann disease.