The midline of the insect CNS provides a good system for studying the control of neuronal and glial cell fates, because it contains a small number of distinct cell types that arise from a unique set of precursors.In this report we analyze the development of the CNS midline in the grasshopper embryo, focusing on the median neuroblast (MNB) cluster, which contains the majority of midline neurons. We have directly traced cell lineage in the MNB cluster by injecting the MNB with tracer dyes and following the development of its progeny in whole embryo cultures. As least three types of neuronal progeny are labeled with tracer dye in these experiments. In addition, we find that all of the midline glia are also derived from the MNB. Thus, this neuroblast is actually a multipotent progenitor cell. We also examined the temporal and spatial patterns of midline development by staining embryos with antibodies to neuronal and glial markers and to the protein product of the engrailedgene, which is transiently expressed by all MNB progeny. Our data show that neuronal and glial progeny are generated from the MNB in distinct temporal phases. A change in the orientation of the MNB's mitotic spindle correlates with the transition between two of the phases of progeny production.[Key words: insect newous system development, CM midline, lineage tracing, g/is, engrailed] The development of the CNS midline has been intensively studied in both orthopterans (the grasshopper Schistocerca and the locust Locusta migratoria) and dipterans (the fruit fly Drosophila melanogaster). The CNS midline in all of these embryos lies between the paired longitudinal tracts. It is derived from the mesectoderm, which is located at the boundary between mesoderm and lateral neuroepithelium in the blastoderm embryo. Mesectodermal cells have morphologies and patterns of gene expression that are different from those oflateral neuroepithelial cells, and a distinct group of "midline genes" controls the development of the CNS midline (Klambt et al., 199 1). Thus, the insect CNS midline provides a good system in which to study