Hepatic fibrosis is the process in which the human body repairs the liver tissue damaged due to various reasons. Recent studies have found that bone morphogenetic protein-7 (BMP-7) and the downstream Smads can antagonize the effect of transforming growth factor-β1, which induces hepatic fibrosis, through various pathways, including inducing the degradation of extracellular matrix, inhibiting cell apoptosis, reducing the expression of various proinflammatory factors, and promoting the regeneration of hepatocytes. This article investigates the role of BMP-7/Smads signaling pathway in hepatic fibrosis.