The inner ear is a complex sensory organ essential for hearing and balance. During embryonic development, the inner ear depends on signaling information originating from the embryonic hindbrain to establish dorsoventral and anteroposterior identity. The Hedgehog (Hh) and Wnt signaling pathways are active in the hindbrain and implicated in otic development, but their exact mechanisms of action remained unclear. We investigated the function of Hh in ear development using a mouse model where we conditionally inactivated Hh signaling in the otic vesicle, a transient embryonic structure that gives rise to the inner ear, while leaving nearby Hh dependent tissues unaffected. We found Hh signaling within the otic vesicle functions to establish vent...