The neural retina of amphibians and chick embryos regenerates following damage. Retinal regeneration requires a change in the differentiated state of the cells of the pigmented epithelium of the retina to a neural progenitor phenotype. The molecular mechanisms that control the cell fate decision between these two very different cell types involves soluble growth factors of the fibroblast growth factor family, as well as components of the extracellular matrix. Recent experiments have also begun to detail differences in gene expression between the neural retina and the pigment epithelium that may be critical for their phenotypic distinction.