Review of Chen et al.Schizophrenia is a severe neurological disorder characterized by psychotic symptoms, emotional distress, and cognitive deficits. It results from an amalgam of genetic, developmental, and environmental factors. In the last decade, several studies identified Nrg1 and its receptor ErbB4 as major schizophrenia-risk genes (Stefansson et al., 2002;Norton et al., 2006). Moreover, behavioral studies on different Nrg1 and ErbB4 mutant mice revealed various endophenotypes that are believed to be useful for modeling schizophrenia in mice (e.g., hyperactivity in response to novelty, hypersensitivity to psychostimulants, and deficits in working memory tasks). Similar phenotypes were shown in mice expressing mutated BACE-1 (the extracellular Nrg1-cleavage enzyme) (Savonenko et al., 2008) or Aph1B/C-␥-secretase (the Nrg1 intracellular proteolytic enzyme) (Dejaegere et al., 2008). Together, these findings suggest that perturbed Nrg1 signaling leads to functional deficits that correlate with schizophrenia. Nonetheless, Nrg1 and ErbB4 mutants do not display overt morphological defects in the brain and the precise role of Nrg1/ ErbB4 signaling in the nervous system remains elusive.In addition to canonical forward signaling via ErbB family receptors, the membrane-bound form of Nrg1 can also activate reverse signaling. Upon synaptic activation or receptor binding, membraneassociated type III Nrg1 is cleaved by ␥-secretase to release the intracellular domain (NRG1-ICD), which translocates to the nucleus where it regulates gene expression (Bao et al., 2003(Bao et al., , 2004. Recently, it was shown that Nrg1/ErbB4 forward signaling promotes the formation of inhibitory circuits in the cortex (Fazzari et al., 2010). Chen et al. (2010) show that Nrg1 reverse signaling is important for the development of the dendritic arbor of pyramidal neurons (PNs).To address the function of type III Nrg1 in PNs in vivo, the authors compared the morphology of dendritic arbor of neurons in type III Nrg1-deficient and wild-type (WT) mice. The histological analysis of mutant and control brains revealed that the total length and number of branches of basal dendrites were greatly reduced in type III Nrg1-deficient versus WT neurons. Because axon length could not be measured efficiently in vivo, the authors used primary cortical cultures. Mimicking the in vivo data, the type III Nrg1 mutant neurons showed a clear reduction in dendritic development in vitro. In addition, the axonal length, but not the axonal branching, was reduced in type III Nrg1-deficient neurons.To elucidate the molecular mechanisms involved in type III NRG1 function in the development of dendrites and axons, Chen et al. (2010) verified that Nrg1 reverse signaling occurs in cortical cultures by showing that ErbB4 binding stimulated translocation of NRG1-ICD to the nucleus and activated transcription of a luciferase reporter gene. Furthermore, they found mutations in the intracellular portion of Nrg1 (V321A/V322A and K329A/Q330A) that abolished the transcriptional activa...