Most, if not all mitochondrial functions, including adenosine-5′-triphosphate (ATP) production and regulation of apoptosis and Ca²⁺ homeostasis, are inextricably linked to mitochondrial morphology and dynamics, a process controlled by a family of GTP-dependent dynamin related ‘mitochondria-shaping' proteins. Mitochondrial fusion and fission directly influence mitochondrial metabolism, apoptotic and necrotic cell death, autophagy, muscular atrophy and cell migration. In this review, we discuss the recent evidence indicating that mitochondrial dynamics influence complex signaling pathways, affect gene expression and define cell differentiation. These findings extend the importance of mitochondria to developmental biology, far beyond their mere bioenergetic role.