The mammillary body (MB), and its axonal projections to the thalamus(mammillothalamic tract, MTT) and the tegmentum (mammillotegmental tract,MTEG), are components of a circuit involved in spatial learning. The bHLH-PAS transcription factors SIM1 and SIM2 are co-expressed in the developing MB. We have found that MB neurons are generated and that they survive at least until E18.5 in embryos lacking both Sim1 and Sim2(Sim1-/-;Sim2-/-). However, the MTT and MTEG are histologically absent in Sim1-/-;Sim2-/- embryos, and are reduced in embryos lacking Sim1 but bearing one or two copies of Sim2, indicating a contribution of the latter to the development of MB axons. We have generated, by homologous recombination, a null allele of Sim1 (Sim1tlz) in which the tau-lacZfusion gene was introduced, allowing the staining of MB axons. Consistent with the histological studies, lacZ staining showed that the MTT/MTEG is barely detectable in Sim1tlz/tlz;Sim2+/- and Sim1tlz/tlz;Sim2-/- brains. Instead, MB axons are splayed and grow towards the midline. Slit1 and Slit2,which code for secreted molecules that induce the repulsion of ROBO1-producing axons, are expressed in the midline at the level of the MB, whereas Robo1 is expressed in the developing MB. The expression of Rig-1/Robo3, a negative regulator of Slit signalling, is upregulated in the prospective MB of Sim1/Sim2 double mutants,raising the possibility that the growth of mutant MB axons towards the midline is caused by a decreased sensitivity to SLIT. Finally, we found that Sim1 and Sim2 act along compensatory, but not hierarchical,pathways, suggesting that they play similar roles in vivo.