Embryo implantation is a complex developmental process requiring precise coordination between mother and offspring to ensure success. Implantation failure is clinically relevant to in vitro fertilization programs and to an understanding of diseases of pregnancy like preeclampsia. Basic and clinical research have identified a number of proteins involved in peri‐implantation development, but an understanding of the implantation process and its cellular and molecular components is just beginning. This review will focus on the implantation and development of the murine embryo and placenta. The significance of ectopic expression and targeted mutagenesis models to these processes will be discussed. Dev. Genet. 21:6–20, 1997. © 1997 Wiley‐Liss, Inc.