An in vitro teratogen assay has been developed that uses Drosophila embryo cell cultures. The endpoints selected in assessing the teratogenic potential of any agent (physical or chemical) involves detection of interference with normal muscle and/or neuron differentiation, induction of heat stock (stress) proteins, and inhibition of normal neurotransmitter levels. Current studies involve use of reporter gene technology (protein fusions) to identify teratogenicity. Results so far suggest that the Drosophila assay is capable of accurately establishing if a particular agent tested can act as a teratogen by a variety of appropriate endpoints (morphological, biochemical, molecular). Furthermore, this assay can be used not only as a teratogen screen, but also in mechanistic studies of abnormal development, gene involvement in teratogenic resistance, and the possible role of heat shock proteins in preventing birth defects.