The above ground organs of plants are generated by the shoot apical meristem. Cellular characteristics and molecular markers indicate that the shoot meristem is patterned into domains with different functions, with stem cells residing in the outer three cell layers of the central zone of the meristem. The boundaries of the domains are determined by positional signals. Here we will discuss our current understanding of the signaling network involved in determining stem cell fate and in setting the boundaries of the stem cell niche at the plant shoot apex.