This paper is devoted to the investigation of Abel equation $$\dot{x}=S(t,x)=\sum ^3_{i=0}a_i(t)x^i$$ , where $$a_i\in \mathrm C^{\infty }([0,1])$$ . A solution x(t) with $$x(0)=x(1)$$ is called a periodic solution. And an orbit $$x=x(t)$$ is called a limit cycle if x(t) is a isolated periodic solution. By means of Lagrange interpolation formula, we give a criterion to estimate the number of limit cycles of the equation. This criterion is only concerned with S(t, x) on three non-intersecting curves. Applying our main result, we prove that the maximum number of limit cycles of the equation is 4 if $$a_2(t)a_0(t)<0$$ . To the best of our knowledge, this is a nontrivial supplement for a classical result which says that the equation has at most 3 limit cycles when $$a_2(t)\ne 0$$ and $$a_0(t)\equiv 0$$ . We also study a planar polynomial system with homogeneous nonlinearities: $$\begin{aligned} \dot{x}=ax-y+P_n(x,y),\ \ \dot{y}=x+ay+Q_n(x,y), \end{aligned}$$ where $$a\in \mathbb R$$ and $$P_n, Q_n$$ are homogeneous polynomials of degree $$n\ge 2$$ . Denote by $$\psi (\theta )=\cos (\theta )\cdot Q_n\big (\cos (\theta ),\sin (\theta )\big )-\sin (\theta )\cdot P_n\big (\cos (\theta ),\sin (\theta )\big )$$ . We prove that if $$(n-1)a\psi (\theta )+\dot{\psi }(\theta )\ne 0$$ , then the polynomial system has at most 1 limit cycle surrounding the origin, and the multiplicity is no more than 2.