Tissue interactions play an essential role in organogenesis during embryonic development. However, virtually no attempts have been made to study the role of tissue interaction in pineal development. In the present study we examined the inductive role of the epidermis and mesenchyme in the morphogenesis of quail pineal glands. The pineal rudiment is first observed at embryonic day 2 (E2: 2 days of incubation) at the dorsal midline of the diencephalon as a short semi-spherical protrusion. Electron microscopic observations revealed that no mesenchymal cells are found between the epidermis and the distal end of the E2 pineal primordium but that a thin layer of mesenchymal cells separate the epidermis from the pineal primordium at E3. Small pieces containing pineal rudiment were cut off from E2 or E3 embryos. They were treated with enzymes to eliminate the epidermis and/or mesenchyme, grafted into E5 chicken eyes, and cultured there for 1 week. When E3 pineal rudiment was treated with Dispase to remove the epidermis, the pineal gland developed normally. When the rudiment was further treated with collagenase to remove the surrounding mesenchymal cells, a multi-follicular structure was still formed, but to a lesser extent than when rudiments were treated with Dispase alone. When E2 quail pineal rudiment with the epidermis was grafted without any treatment, a multi-follicular structure developed which morphologically resembled embryonic pineal organs. When the epidermis was removed from E2 rudiments by Dispase, a single large vesicular structure was formed. These results suggest that the overlying epidermis and/or mesenchymal cells play some inductive role in the initial pineal development, while the mesenchymal tissue plays an important role in pineal follicular formation later during development. Since only a few experimental studies have been done to examine pineal morphogenesis, the present study provides fundamental insights into avian pineal development.