Mouse Peg3 is a paternally expressed gene. Study of methylation of the Peg3 gene in P19 embryonal carcinoma cells suggested that monoallelic methylation of CpG dinucleotides is not only present in the promoter region, but also in the first exon and the first intron. Promoter activity analysis demonstrated that the minimal promoter of the Peg3 gene is located in the region between -827 and +712 and the critical region for promoter activity is between +423 and +712. We further identified the roles of the cis-elements, conserved sequence element (CSE) and YY1-binding sites, in the regulation of Peg3 expression and found that CSE is involved in the inhibition of Peg3 expression, while YY1-binding sites serve as activating cis-elements to antagonize CSE-mediated inhibition.