Secreted frizzled related proteins (SFRPs) are a new class of signaling mol
ecules that antagonize the activity of Wnt proteins. However, the full rang
e of SFRP activities and mechanisms of action are not fully understood. In
our search for molecules which may participate in the development of the ey
e, we have isolated the chick homologue of Sfrp1. Here we show that in chic
k, Sfrp1 has a widespread and dynamic expression in the most anterior porti
on of the embryo. At later stages of development, Sfrp1 continues to be exp
ressed with a pattern that is consistent with a function in cell fate deter
mination and differentiation in both the eye and the neural tube. On the ba
sis of this expression pattern, we have analyzed possible roles of Sfrp1 in
the development of chick embryos. With in vitro and in vivo experiments, w
e show here that Sfrp1 has a dual function in the development of the chick
retina: it promotes axon outgrowth and increases neuronal differentiation,
while inhibiting cell proliferation.