Tissue culture transfection and in vitro biochemical studies have suggested that heterodimers of thyroid hormone receptors (TRs) and 9-cis retinoic acid receptors (RXRs) are the likely in vivo complexes that mediate the biological effects of thyroid hormone, 3,5,3-triiodothyronine (T 3 ). However, direct in vivo evidence for such a hypothesis has been lacking. We have previously reported a close correlation between the coordinated expression of TR and RXR genes and tissue-dependent temporal regulation of organ transformations during Xenopus laevis metamorphosis. By introducing TRs and RXRs either individually or together into developing Xenopus embryos, we demonstrate here that RXRs are critical for the developmental function of TRs. Precocious expression of TRs and RXRs together but not individually leads to drastic, distinct embryonic abnormalities, depending upon the presence or absence of T 3 , and these developmental effects require the same receptor domains as those required for transcriptional regulation by TR-RXR heterodimers. More importantly, the overexpressed TR-RXR heterodimers faithfully regulate endogenous T 3 response genes that are normally regulated by T 3 only during metamorphosis. That is, they repress the genes in the absence of T 3 and activate them in the presence of the hormone. On the other hand, the receptors have no effect on a retinoic acid (RA) response gene. Thus, RA-and T 3 receptor-mediated teratogenic effects in Xenopus embryos occur through distinct molecular pathways, even though the resulting phenotypes have similarities.Thyroid hormone receptors (TRs) are the nuclear receptors of thyroid hormone, 3,5,3Ј-triiodothyronine (T 3 ) (17,55,69). They belong to the growing family of nuclear hormone receptors, with over 150 identified members, including the receptors for glucocorticoid and RAs (39). Like most other members of this superfamily, TRs are DNA-binding transcription factors whose activities are regulated by their ligand, thyroid hormone. Their DNA binding domain is located in the amino-terminal half of the protein and recognizes specific DNA sequences, i.e., thyroid hormone response elements (TREs). The hormone binding domain is within the carboxyl-terminal half of the protein, which also contains other functional domains, including the AF2 domain, i.e., the transcriptional activation sequence at the carboxyl terminus of the receptor.TRs most likely function as dimers, although they can bind weakly to specific TREs as monomers (18,66,75). In addition, TR homodimers have relatively weak DNA binding affinity compared to the heterodimers formed between TRs and 9-cis RA receptors (RXRs) (26,32,36,41,49,77,78). TR-RXR heterodimers not only bind TREs specifically but also regulate the transcription of T 3 response genes in tissue culture cells with high specificity, implicating that they are the in vivo mediators of the biological effects of T 3 .TR-RXR heterodimers can bind to TREs even in chromatin, both in the presence and absence of T 3 (31,48,61,70).Studies on T 3 -inducible ...