The vertebrate brain is a complex and highly organized structure with numerous neurons and glial cells. During development, undifferentiated progenitor cells proliferate from neural stem/precursor cells and gradually restrict their fates according to their environment. Differentiated cells are arranged precisely to accomplish their function and to maintain integrity as a whole brain. In this respect, cells must receive signals to know where and when they determine their fates. Secreted and membrane molecules convey the information between cells. The secreted glycoprotein Sonic hedgehog (Shh) is one of such signaling molecules. Sonic hedgehog is widely known to specify ventral neuronal types according to the concentration of Shh, whereas differentiation of dorsal neurons is largely independent of Shh. However, in the diencephalon and midbrain, dorsal parts are also affected in Shh-mutant embryos. Detailed analysis demonstrated that Shh signaling indirectly regulates the growth of the dorsal tissue in these regions. One of the fibroblast growth factor (FGF) members, namely FGF15, has been reported to be downstream to Shh signaling in the mouse embryonic brain. Luciferase assays and transgenic analysis revealed that the Fgf15 gene is a direct target of Shh. Downregulation of Tcf4 and upregulation of Bmp4 in Shh mutants suggest that Wnt and BMP signals from the dorsal midline are also involved in the dorsal brain phenotype. These data suggest the coordinating role of the Shh-FGF15-Wnt/BMP signaling cascade between the ventral and dorsal parts of the brain.