Interest in retinoids and craniofacial development originated independently from nutritional and teratological studies; however, the site of action of retinoids in normal development remains contentious. Recent transgenic strategies have shown that retinoic acid and nuclear retinoid receptors are required for the morphogenetic specification of cranial neural crest cells and their mesenchymal derivatives during craniofacial development. Interestingly, while some aspects of the RA teratogenicity have been shown to be receptor-mediated, there is as yet no clear evidence that this is the case for the embryonic head and face. Hox genes are one important set of targets for RA in the developing neural primordium and cranial neural crest, but it remains unclear as to how retinoid-mediated regulation of such targets is realized as the morphogenetic specification of cell fate.