How direction of image motion is detected as early as at the level of the vertebrate eye has been intensively studied in retina research. Although the first direction-selective (DS) retinal ganglion cells were already described in the 1960s and have since then been in the focus of many studies, scientists are still puzzled by the intricacy of the neuronal circuits and computational mechanisms underlying retinal direction selectivity. The fact that the retina can be easily isolated and studied in a Petri dish-by presenting light stimuli while recording from the various cell types in the retinal circuits-in combination with the extensive anatomical, molecular and physiological knowledge about this part of the brain presents a unique opportunity for studying this intriguing visual circuit in detail. This article provides a brief overview of the history of research on retinal direction selectivity, but then focuses on the past decade and the progress achieved, in particular driven by methodological advances in optical recording techniques, molecular genetics approaches and large-scale ultrastructural reconstructions. As it turns out, retinal direction selectivity is a complex, multi-tiered computation, involving dendrite-intrinsic mechanisms as well as several types of network interactions on the basis of highly selective, likely genetically predetermined synaptic connectivity. Moreover, DS ganglion cell types appear to be more diverse than previously thought, differing not only in their preferred direction and response polarity, but also in physiology, DS mechanism, dendritic morphology and, importantly, the target area of their projections in the brain.