Retinoic acid (RA), the bioactive derivatives of vitamin A, is well known for its critical role in development and homeostasis of the nervous system. RA signaling depends on activities of RA-producing enzymes, such as retinaldehyde dehydrogenases (Raldh1, 2, and 3) and two classes of retinoid receptors: retinoic acid receptors (Rar α, β, γ) and retinoid X receptors (Rxr α, β, γ). Rarβ and/or Raldh1 show specific expression profile in the pre- and postnatal striatum and the substantia nigra pars compacta (SNc), the component structures of the nigrostriatal dopaminergic system, suggesting an essential role of RA during their development and homeostasis. Obtained results show that Rarβ ablation affects development of discrete sub-population of medium spiny GABAergic neurons (MSN) during neurogenesis of the striatum resulting in its disturbed cytoarchitecture after birth. The number of dopamine D1 and D2 receptor positive neurons, which define neuroanatomically and molecularly distinct populations of MSNs are reduced in Rarβ-/- mice. The cellular deficits result in compromised activities of dopamine receptor specific ligands and behavioral abnormalities consistent with striatal dysfunction. Moreover, similar cellular and behavioral deficits are found in the mice with null mutation in Raldh1 (Raldh1-/-), the major RA provider to the adult striatum, suggesting specific role of RA in the postnatal physiology of the structure. Finally, I found that compromised RA signaling by ablation of Raldh1, which is also known as the earliest specific marker of developing midbrain dopaminergic neurons, leads to impaired development of the SNc.