Basic-helix-loop-helix transcription factors regulate neurogenesis and neur
onal differentiation by as Set unknown mechanisms. We show that an embryoni
c neuronal-specific basic-helix-loop-helix protein, HEN1 (also known as NSC
L1 or NHLH), interacts with 'LIM only' proteins. Examination of the express
ion patterns of XHEN1 and XLMO-3, the Xenopus homologues of these human gen
es, reveals extensive overlap during early neurogenesis: at the onset of ga
strulation on the dorsal side of the blastopore lip and, subsequently, in t
he prospective neural plate. Binding of XLMO-3 increases the transcriptiona
l activity of XHEN1 in vivo. Co-expression of these two genes in Xenopus em
bryos induces a cascade of expression of neuronal-specific basic-helix-loop
-helix proteins that leads to neuronal differentiation. We propose that XHE
N1, in concert with XLMO-3, is a critical regulator of neurogenesis.