Recent studies of Schwann cell differentiation in vivo and in vitro have provided new insights into determinative signal transduction events both at the cell surface and in the nucleus. Several polypeptide growth factors and their receptors, most notably the neuregulins and receptors of the ErbB family, have been implicated in the specification of cell fate, the control of precursor cell proliferation, and the regulation of programmed cell death during both early and late Schwann cell differentiation. Our understanding of the transcriptional control of Schwann cell development, particularly by the POU protein SCIP and the zinc-finger protein Krox-20, has been advanced by transgenic, knockout, and expression studies.