Our purpose in this paper is to give a basic theory of Möbius differential geometay. In such geometry we study the properties of hypersurfaces in unit sphere Sn which are invariant under the Möbius transformation group on Sn .
Since any Möbius transformation takes oriented spheres in Sn to oriented spheres, we can regard the Möbius transformation group Gn as a subgroup MGn of the Lie transformation group on the unit tangent bundle USn of Sn . Furthermore, we can represent the immersed hypersurfaces in Sn by a class of Lie geometry hypersurfaces (cf. [9]) called Möbius hypersurfaces. Thus we can use the concepts and the techniques in Lie sphere geometry developed by U. Pinkall ([8], [9]), T. Cecil and S. S. Chern [2] to study the Möbius differential geometry.