In the developing central nervous system, the cell cycle clock plays a crucial role in determining cell fate specification. A second clock, the circadian oscillator, generates daily rhythms of cell cycle progression. Although these two clocks interact, the mechanisms linking circadian cell cycle progression and cell fate determination are still poorly understood. A convenient system to address this issue is the pineal organ of lower vertebrates, which contains only two neuronal types, photoreceptors and projection neurons. In particular, photoreceptors constitute the core of the pineal circadian system, being able to transduce daily light inputs into the rhythmical production of melatonin. However, the genetic program leading to photoreceptor fate largely remains to be deciphered. Here, we report a previously undescribed function for the homeobox gene Bsx in controlling pineal proliferation and photoreceptor fate in Xenopus. We show that Xenopus Bsx (Xbsx) is expressed rhythmically in postmitotic photoreceptor precursors, reaching a peak during the night, with a cycle that is complementary to the daily rhythms of S-phase entry displayed by pineal cells. Xbsx knockdown results in increased night levels of pineal proliferation, whereas activation of a GR-Xbsx protein flattens the daily rhythms of S-phase entry to the lowest level. Furthermore, evidence is presented that Xbsx is necessary and sufficient to promote a photoreceptor fate. Altogether, these data indicate that Xbsx plays a dual role in contributing to shape the profile of the circadian cell cycle progression and in the specification of pineal photoreceptors, thus acting as a unique link between these two events.he correct balance between proliferation and differentiation is crucial to ensure the appropriate size of the different areas of the central nervous system and the proportionate generation of a remarkable variety of neuronal and glial cell types. In particular, in the retina and cerebral cortex, cell cycle exit of progenitors is strictly coordinated with cell fate specification following a temporal order that involves different competence stages (1, 2). An additional level of complexity in the control of cell proliferation was recently discovered with the observation that the circadian clock, which regulates metabolic and physiological rhythms, also generates daily rhythms of cell cycle progression. Indeed, several cell cycle regulators, including c-myc, cyclin D1, and Wee-1, are regulated in a circadian manner (3, 4). This results in S-phase entry of many cells at the end of the day or during the night, an evolutionarily conserved phenomenon that has been proposed to represent an adaptation of ancestral unicellular animals to reduce the risk of UV-induced DNA damage (5, 6).Although significant progress has been made in understanding how the circadian clock and the cell cycle interact, it is still unclear what the molecular links are between the circadian control of cell proliferation and the generation of specific cell types.A suitable system in...