The success of early embryonic development depends on oocyte nuclear and cytoplasmic maturation. We have investigated whether glial cell line-derived neurotrophic factor (GDNF) affects the in vitro maturation (IVM) of porcine oocytes and their subsequent ability to sustain preimplantation embryo development. GDNF and both its co-receptors, GDNF family receptor -1 (GFR-1) and the rearranged during transformation (RET) receptor were expressed in oocytes and their surrounding cumulus cells derived from small and large follicles. When included in in vitro maturation (IVM) medium, GDNF significantly enhanced cumulus cell expansion of both small and large cumulus-oocyte complexes (COCs) and increased the percentage of small follicle-derived oocytes maturing to the metaphase II (MII) stage, although nuclear maturation of large oocytes was not significantly affected. Examination of cyclin B1 protein expression as a measure of cytoplasmic maturation revealed that in the presence of GDNF, cyclin B1 levels were significantly increased in large follicle-derived oocytes, as well as in oocytes from small follicles to a level comparable to the untreated large group. After activation, a significantly higher percentage of both small and large oocytes that were matured in the presence of GDNF developed to the blastocyst stage compared to untreated controls. Indeed, GDNF enhanced the blastocyst rate of small oocytes to levels comparable to those obtained for large oocytes matured without GDNF. The effect of GDNF was specific, as its enhancement of nuclear maturation and embryo developmental potential was blocked by an antibody against GFR-1. Our study provides the first functional evidence that GDNF affects oocyte maturation and preimplantation embryo developmental competence in a follicular stage-dependent manner. This finding may provide insights for improving the formulation of IVM culture systems, especially for oocytes from small follicles.