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.