Glucocorticoids modulate ovarian function in cattle. However, their regulatory mechanisms have not been fully elucidated. In the present study, we examined gene expression of two glucocorticoid-metabolizing enzymes, a bidirectional 11β-HSD type 1 (11HSD1) and a dehydrogenase 11β-HSD type 2 (11HSD2), and glucocorticoid receptor (GR) in bovine follicles during follicular maturation and atresia. Granulosa cells (GCs) and theca interna layers (TIs) were harvested from follicles classified as small growing, dominant, preovulatory, early atretic and late atretic follicles. The expression levels of 11HSD1, 11HSD2 and GR mRNA were quantified by real-time PCR. In the healthy follicles, expression of 11HSD1 mRNA increased as follicles matured, both in GCs and TIs. A significant negative correlation was found between the concentration of cortisol in follicular fluid and the level of 11HSD1 mRNA in GCs. The expression of 11HSD2 and GR was either very low or largely unchanged during follicular maturation. In the atretic follicles, a drastic increase in the expression of 11HSD2 was observed both in GCs and TIs. To assess the effect of FSH on the expression of 11HSDs and GR, GCs were cultured with FSH (0-100 ng/ml) for up to 6 days. FSH increased 11HSD1 mRNA in a dose-dependent manner, but not 11HSD2, nor GR. Taken together, these results suggest that developmentally-regulated 11HSD1 plays a pivotal role in modulating the local glucocorticoid environment in maturing bovine follicles.