The establishment of the primitive streak and its derivative germ layers, mesoderm and endoderm, are prerequisite steps in the formation of many tissues. To model these developmental stages in vitro, an ES cell line was established that expresses CD4 from the foxa2 locus in addition to GFP from the brachyury locus. A GFP-Bry ؉ population expressing variable levels of CD4-Foxa2 developed upon differentiation of this ES cell line. Analysis of gene-expression patterns and developmental potential revealed that the CD4-Foxa2 hi GFP-Bry ؉ population displays characteristics of the anterior primitive streak, whereas the CD4-Foxa2 lo GFP-Bry ؉ cells resemble the posterior streak. Using this model, we were able to demonstrate that Wnt and TGF-͞nodal͞activin signaling simultaneously were required for the generation of the CD4-Foxa2 ؉ GFP-Bry ؉ population. Wnt or low levels of activin-induced a posterior primitive streak population, whereas high levels of activin resulted in an anterior streak fate. Finally, sustained activin signaling was found to stimulate endoderm commitment from the CD4-Foxa2 ؉ GFP-Bry ؉ ES cell population. These findings demonstrate that the early developmental events involved in germ-layer induction in the embryo are recapitulated in the ES cell model and uncover insights into the signaling pathways involved in the establishment of mesoderm and endoderm.gastrulation ͉ mesoderm ͉ endoderm T o be able to fully exploit the potential of embryonic stem (ES) cells in basic biology and regenerative medicine, it is essential to recapitulate the critical lineage induction events of the early embryo in this model system. One of the earliest commitment steps in embryogenesis is the formation of the primary germ layers, mesoderm, endoderm, and ectoderm, the founder populations of all somatic cell types in the body (1). Mesoderm and endoderm are formed during gastrulation, a process that involves the movement of undifferentiated epiblast cells through a structure called the primitive streak (PS). The PS can be subdivided into distinct regions, posterior, middle, and anterior, based on lineage development and gene-expression patterns. With respect to developmental potential, distinct subpopulations of mesoderm are induced in each of the different regions, whereas definitive endoderm forms from the anterior PS of the early-PS and mid-PS stages (2-5). These observations suggest that the different regions of the PS constitute different signaling environments that are responsible for the induction of specific lineages.To address questions regarding early commitment by using the ES cell model, it is essential to be able to track and isolate germ-layer populations from the differentiation cultures. By using an ES cell line with the green fluorescence protein (GFP) targeted to the PS and early mesodermal-specific gene brachyury (6) (GFPBry ES cells), it has been possible to quantify mesoderm induction and isolate and characterize different mesodermal populations (7,8). In addition, brachyury-expressing cells were found ...