During development of the mouse embryo, blood cells are generated from mesodermal precursors at specific times and locations. Using various in vivo and in vitro systems, we are now starting to understand the cascade of molecular events leading to the commitment of mesoderm and the formation of the first blood precursors, the hemangioblast. The in vitro differentiation of embryonic stem (ES) cells has proved to be an invaluable model to study lineage commitment, because one can access and easily manipulate large quantities of early progenitor cells. To help us track mesodermal subpopulations and study their specification toward blood lineages, we have engineered an ES cell line that expresses the green fluorescence protein exclusively in the mesoderm germ layer, under the control of the Brachyury regulatory sequences.