T cell development and differentiation is carefully orchestrated by a series of cytokines. The importance of STAT family proteins in mediating signals by these cytokines is well-known, but new information on the role of STATs in novel aspects of T cell function and T cell subsets continues to accumulate. Recent studies have placed Stat5a/b and Stat3 center stage in T cell development and differentiation. Stat5a/b are indispensable in T regulatory (Treg) cell development and maintenance, and negatively regulate T helper 17 (Th17) cell differentiation. Conversely, Stat3 is essential for Th17 differentiation and inhibits Treg cells. The balance of Treg and Th17 cells is thought to be critical in maintaining immune tolerance, while preserving effective host defense. Therefore, Stat5a/b and Stat3 are emerging to be key players in T cell differentiation and homeostasis.