A LIM homeobox gene, Lim5, is known to be expressed in the forebrain of Xenopus and zebrafish (Toyama et al. [1995] Dev. Biol. 170:583-593). Results from developmental and comparative studies of its mouse ortholog, Lhx5, indicate that this gene may play important roles in forebrain development. Lhx5 expression is detected in the most anterior portion of the neural tube at the headfold stage, overlapping partially with Otx2 expression domain. After neural tube closure, Lhx5 is expressed as a transverse stripe, covering most of the diencephalic primordium. This expression recedes to restricted areas as Dlx gene expression occurs. By midgestation, both genes, Lhx5 and Dlx5, are expressed in the diencephalon and ventral telencephalon in an alternating complementary pattern. It may be that Dlx inhibits Lhx5, and this may represent a step of early regionalization of the forebrain. Lhx5 is also expressed in midbrain, hindbrain, and spinal cord, overlapping extensively with Lhx1 starting from day E10.5 of gestation. The early, persistent, and dynamic expression of Lhx5 suggests a regulatory function in forebrain formation.