The Groucho/Tle family of corepressor proteins is known to regulate multiple developmental pathways. Applying the dominant-negative effect of the short member Aes, we demonstrate here a critical role of this gene family also for ear development. Misexpression of Aes in medaka embryos resulted in reduced size or loss of otic vesicles, whereas overexpression of the full-length Groucho protein Tle4 gave the opposite phenotype. These results are in close agreement with phenotypes observed for eye formation, suggesting a similar role for Groucho/Tle proteins in the developmental pathways of both sensory organs. Furthermore, by using the heat-inducible HSE promoter, we observed reversible branching of the embryonic axis upon Aes misexpression, indicating a transient duplication of the organizer. Groucho proteins, therefore, are critical for organizer maintenance. Developmental Dynamics 233:760 -771, 2005.