The peptide somatostatin is one of many neuroactive agents that influence retinal physiology. It is synthesized primarily in a subclass of amacrine cells and believed to function as a neurotransmitter, neuromodulator or trophic factor. The cloning of the somatostatin receptors (sst1-5) in the early nineties provided the appropriate tools for the study of ssts in many tissues, including the retina. In this review, emphasis is given to recent studies that have provided significant information on the functional role of somatostatin in retinal circuitry and the retinal pigment epithelium. The important role of somatostatin in retinal disease therapeutics is also discussed.