The diencephalon is the caudal part of the developing forebrain that gives rise to the epithalamus, thalamus, hypothalamus and retina. The mature diencephalon is functionally and anatomically parceled into well-defined nuclei. In an effort to understand how this region of the brain develops we examined the expression of several transcription factors during development. We find that the LIM homeodomain transcription factor, cLhx2b, and the zinc finger transcription factors, cZic1 and cZic3, are predominantly expressed in partially overlapping domains of the chick dorsal diencephalon. Interestingly, a correlation exists between their expression in neuroepithelial progenitor cells at early stages and in the differentiated nuclei at progressively more advanced stages of development.