In many organisms the allocation of primordial germ cells (PGCs) is determi
ned by the inheritance of maternal factors deposited in the egg. However, i
n mammals, inductive cell interactions are required around gastrulation to
establish the germ line. Here, we show that Bmp4 homozygous null embryos co
ntain no PGCs. They also lack an allantois, an extraembryonic mesodermal ti
ssue derived, like the PGCs, from precursors in the proximal epiblast. Hete
rozygotes have fewer PGCs than normal, due to a reduction in the size of th
e founding population and not to an effect on its subsequent expansion. Ana
lysis of beta-galactosidase activity in Bmp4(lacZneo) embryos reveals that
prior to gastrulation, Bmp4 is expressed in the extraembryonic ectoderm. La
ter, Bmp4 is expressed in the extraembryonic mesoderm, but not in PGCs. Chi
mera analysis indicates that it is the Bmp4 expression in the extraembryoni
c ectoderm that regulates the formation of allantois and primordial germ ce
ll precursors, and the size of the founding population of PGCs. The initiat
ion of the germ line in the mouse therefore depends on a secreted signal fr
om the previously segregated, extraembryonic, trophectoderm lineage.