The postnatal development of the electrophysiological properties and morphology of rat neostriatum was studied using in vivo and in vitro intracellular recording and biocytin staining and light and electron microscopy. The principal neurons, the medium spiny neurons, were found to undergo a protracted postnatal development of their electrophysiological and morphological characteristics. Most of the intrinsic membrane properties of medium spiny neurons came to resemble those in the adult by the end of the 3rd postnatal week. Synaptic responses and spontaneous activity patterns in medium spiny neurons were dependent on the arrival and functional maturation of excitatory afferents from cortex and thalamus and did not become adult-like until the end of the 1st postnatal month.