The physiological and pathological importance of lysophosphatidic acid (LPA) in the nervous system is underscored by its presence, as well as the expression of its receptors in neural tissues. In fact, LPA produces responses in a broad range of cell types related to the function of the nervous system. These cell types include neural cell lines, neural progenitors, primary neurons, oligodendrocytes, Schwann cells, astrocytes, microglia, and brain endothelial cells. LPA-induced cell type-specific effects include changes in cell morphology, promotion of cell proliferation and cell survival, induction of cell death, changes in ion conductance and Ca2+ mobilization, induction of pain transmission, and stimulation of vasoconstriction. These effects are mediated through a number of G protein-coupled LPA receptors that activate various downstream signaling cascades. This review provides a current summary of LPA-induced effects in neural cells in vitro or in vivo in combination with our current understanding of the signaling pathways responsible for these effects.