The external segment of the pallidum (GP(e)) is a relatively large nucleus located caudomedial to the neostriatum (Str). The GP(e) receives major inputs from two major basal ganglia input nuclei, the Str and the subthalamic nucleus (STN), and sends its output to many basal ganglia nuclei including the STN, the Str, the internal pallidal segment (GP(i)), and the substantia nigra (SN). Thus, the GPe can be placed at the center of the basal ganglia connection diagram (Fig. 1(A)). From the viewpoint that emphasizes the direct and indirect pathways of the basal ganglia, the GP(e) is a component of the indirect pathway that relays Str inputs to the STN. The indirect pathway can be traced in Fig. 1(A), although it comprises only a part of multiple indirect pathways. This chapter begins with a brief description of the anatomical organization of the GP(e) followed by physiological and pharmacological characterizations of GABAergic responses in the GP(e).