Recent studies in zebrafish have contributed to our understanding of early endoderm formation in vertebrates. Specifically, they have illustrated the importance of Nodal signaling as well as three transcription factors, Faust/Gata5, Bonnie and Clyde, and Casanova, in this process. Ongoing genetic and embryological studies in zebrafish are also contributing to our understanding of later aspects of endoderm development, including the formation of the gut and its associated organs, the liver and pancreas. The generation of transgenic lines expressing GFP in these organs promises to be particularly helpful in such studies.