In the olfactory pathway, as in the limbs, branchial arches, and heart, mes
enchymal/epithelial induction, mediated by retinoic acid (RA), FGF8, sonic
hedgehog (shh), and the BMPs, defines patterning, morphogenesis, and differ
entiation. Neuronal differentiation in the olfactory epithelium and directe
d growth of axons in the nascent olfactory nerve depend critically upon thi
s inductive interaction. When RA, FGF8, shh, or BMP signaling is disrupted,
distinct aspects of olfactory pathway patterning and differentiation are c
ompromised. Thus, a cellular and molecular mechanism that facilitates muscu
loskeletal and vascular development elsewhere in the embryo has been adapte
d to guide the differentiation of the olfactory pathway in the developing f
orebrain.