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Next to a prominent nutritional role during larval growth the teleost yolk cell may function during early developmental processes as a source of inducing signals. In Xenopus mesoderm-inducing signals reside in the vegetal cells of the blastula and exert their function on the more animal located cells in the margin. Because of its position reminiscent of the vegetal cells in Xenopus, the yolk cells of teleost fishes may have a similar inductive capacity. Removal of the blastoderm from the yolk cell (YC) offers an experimental approach to study to what extent blastoderm differentiation and morphogenesis depend on inductive interaction with the YC. Expression of marker genes for dorsal-ventral and anterior/posterior determination such as no tail, goosecoid and caudal was examined in blastoderm explants, which were incubated until sibling controls reached the tail bud stage. Blastoderms removed at 3 h post fertilisation expressed rudimentary dorsal-ventral polarity. Apparently signals leading to this expression had reached the margin of 3-h blastoderms. Blastoderms removed at 4 h showed in addition to dorsal-ventral polarity notochord-like structures and also expression patterns of goosecoid and caudal suggesting that gastrulation movements had occurred.