Interaction between maternal endometrium and embryo during implantation is mediated through the multiple molecules and signalling cascades, which are still not fully understood. This complex sequence of events results in the transformation of stromal cells into decidual cells (decidualization). The conceptus is essential to regulate these changes in baboon stromal fibroblasts, possibly through production of cytokines by the implanting embryo. The role of interleukin-1 (IL-1) system during implantation and its contribution to decidualization is discussed in this review. Decidualized endometrial stromal cells are thought to contribute to establishment of a successful pregnancy by expressing a number of gene products. One of the major products of decidual cells is insulin-like growth factor binding protein-1 (IGFBP-1). The IGFBP-1 serves as a modulator of insulin-like growth factor (IGF) protein action in the interactions between the decidua and invading trophoblast. The delineation of the mechanisms involved in cooperative action of transcription factors FKHR and HOXA10 leading to IGFBP-1 expression, as well as interrelationship between IL-1 and IGF signalling cascades will contribute to the understanding of events leading to successful implantation.