Basic fibroblast growth factor (FGF) and acidic FGF are two closely related peptides that are multifunctional. They control proliferation, differentiation, and various other cellular functions in cells derived from the mesoderm and the neuroectoderm. The structural properties, genomic organization, and biological functions of both peptides in vitro or in vivo are reviewed. Their marked ability to enhance formation of connective tissue and vascular capillaries, as well as their involvement in limb regeneration, suggest several possible therapeutic applications.