In sexually segregated cultures of dissociated neurons taken from ventromedial hypothalamus of rat fetuses at embryonic day 16 (E16), it is demonstrated that only neurons from males respond with increased axonal growth to the addition of 17-beta-estradiol 100 nM (E2) to the culture medium. Moreover, this response is contingent upon co-culture with heterotopic glia from a target region (amygdala), whereas in the presence of homotopic glia or in cultures without glia, E2 has no effect. It is concluded that before neurons are exposed to gonadal steroids in utero there is a sexual difference in the response to E2, probably explained by earlier maturation of neurons from males as compared to females. The possibility that the observed axogenic effect may be the consequence of an interaction among E2, cells equipped with specific receptors, and glia-producing trophic factors is discussed.