The neural circuits that regulate sleep and arousal as well as their integration with circadian circuits remain unclear, especially in Drosophila. This issue intersects with that of photoreception, because light is both an arousal signal in diurnal animals and an entraining signal for the circadian clock. To identify neurons and circuits relevant to light-mediated arousal as well as circadian phase-shifting, we developed genetic techniques that link behavior to single cell-type resolution within the Drosophila central brain. We focused on the unknown function of the 10 PDFcontaining large ventral lateral neurons (l-LNvs) of the Drosophila circadian brain network and show here that these cells function in light-dependent arousal. They also are important for phase shifting in the late-night (dawn), indicating that the circadian photoresponse is a network property and therefore non-cell-autonomous. The data further indicate that the circuits underlying light-induced arousal and circadian photoentrainment intersect at the l-LNvs and then segregate.L ight promotes arousal in diurnal species. Drosophila arousalsleep circuits remain largely uncharacterized. Exceptions are the mushroom body with a role in sleep-arousal (1, 2) as well as neurons of the pars intercerebralis (PI) and the ellipsoid body (EB) of the central complex (CC) with roles in locomotion (3, 4). Importantly, there is no indication of how the poorly understood fly sleep-movement circuits are coordinated or communicate with the well-studied brain circadian network, or whether these Ϸ150 circadian neurons impact directly on sleep or arousal.