The thyroid hormone (TH) is essential for growth and development of brain, including the cerebellum. Deficiency of TH during the perinatal period results in abnormal cerebellar development, which is well documented in rodent animal models. TH exerts its major effect by binding to the nuclear TH receptor (TR), a ligand-regulated transcription factor. Although TR is highly expressed in many brain regions, including the cerebellum, TH-target genes that likely play critical roles in brain development have not yet been fully clarified. At present, however, expression of many cerebellar genes is known to be altered by perinatal hypothyroidism. Interestingly, after the critical period of TH action (first 2 weeks of postnatal life in rodent cerebellum), the activities of many genes that are altered by perinatal hypothyroidism return to the same levels as those of euthyroid animal despite morphological alterations. Several prominent candidate genes that may play key roles in TH-mediated cerebellar development are discussed in this review. On the other hand, TR-mediated transcription may be modulated by various substances. The nuclear hormone receptor superfamily contains more than 40 transcriptional factors and, most of these receptors are present in the brain. Possible interactions between TR and such transcription factors are also discussed. Further, several additional issues that need to be clarified are discussed. One such issue is the discrepancy of phenotypes among TR-knockout and perinatal hypothyroid mice. Recent studies have provided several important clues to address this issue. Another current area that needs attention is the effect of endocrine disruptors on brain development. Since the molecular structures of TH and several endocrine disrupting chemicals are similar, the effect of such chemicals on brain may be exerted at least in part through the TH system. Recent studies have shown the possible interaction between TR and such chemicals. Overall, this review provides current findings regarding molecular mechanisms on TH action in cerebellar development.