THYROID hormone (TH; T3,3,5, T4,3,5,3', thyroxine) plays an important role in development and functional maintenance of the central nervous system [1]. TH deficiency during pre-and early postnatal period results in abnormal brain development known as cretinism in humans. However, the molecular mechanism of TH action in brain is not fully understood. In particular, brain development is severely affected by TH deficiency during a limited period, called the "critical period" of TH action, but the mechanism generating such a period is not known. Although TH treatment immediately after birth is sufficient to prevent brain damage induced by neonatal hypothyroidism (i.e., by thyroid dysgenesis), such treatment cannot fully rescue the abnormal brain development induced by hypothyroidism in utero (i.e., by maternal iodine deficiency). Thus, each brain region has a distinct critical period, during which neurons are particularly sensitive to TH.The effect of TH is mainly exerted through nuclear TH receptor (TR), a ligand-dependent transcription factor [2], although TH action at non-genomic site has also been proposed [3]. Thus, TH action in brain may also be exerted mainly through TH-TR interaction.To clarify the role of the TH-TR system in brain, one approach is to identify the target genes that are regulated by TH, while another is to understand the mechanism of brain-specific TR action, such as to identify the factors responsible for the generation of the critical period. For such purposes, we have been using the developing rodent cerebellum as a model system [4]. There are several advantages of using this model. First, although rodents are born much earlier than humans, the developmental pattern is not greatly different between the two species. Second, the rodent cerebellum largely develops postnatally, and TH deficiency during such a period markedly affects its development. Thus, postnatal rodent cerebellum is a good model to study TH action in developing brain, since TH status is easier to manipulate in postnatal animal than in fetus. In the present article, the molecular mechanism of TH action in developing brain is reviewed mainly by introducing our previous studies using rodent cerebellum model. Fig. 1 shows typical examples of the effect of perinatal hypothyroidism on brain development.This article also summarizes our recent studies on the effect of environmental pollutants on brain development. Exposure to certain pollutants may cause abnormal brain development similar to that seen in perinatal hypothyroidism [5]. In particular, brain damage by perinatal exposure of polychlorinated biphenyls (PCBs) has been considered to be induced in part through disruption of the TH system [6]. However, the mechanism of PCB action has not been well characterized. Recent findings have provided several clues to our further understanding of the possible molecular mechanism of PCB action.