BMP4 inhibits the generation of interneurons. A–C, Dorsolateral telencephalic explants were infected with control virus expressingβ-gal at E11.5 and cultured in the absence or presence of BMP4 (10 ng/ml) for 3 d (4 div total). After 4 div the proportion of GABA+ (A), PCNA+ (B), or TuJ1+ (C) cells was determined among the virus-infected, β-gal+ cells. Cells from dissociated explants were also cultured as monolayers for 3 d without BMP4 (7 div total). Dorsolateral telencephalic progenitors generated fewer interneurons (A), approximately equal proportions of neurons (C), and divided less extensively (B) after explants were treated with BMP4 compared with untreated explants. D, E11.5 dorsomedial telencephalic explants were infected with control virus and cultured in Shh alone (0.5 μm) or Shh+BMP4 (0.5 μm Shh; 10 ng/ml BMP4) for 3 d (4 div total). Explants were dissociated, cultured as monolayers without exogenous factors, and the proportion of GABAergic neurons was determined 3 d later (7 div total). Shh alone induced the production of interneurons, but BMP4 inhibited the interneuron-inducing effect of Shh. *p ≤ 0.03; **p ≤ 0.0006.