The nucleus isthmi in the dorsolateral tegmentum had been one of the most obscure structures in the nonmammalian midbrain for eight decades. Recent studies have shown that this nucleus and its mammalian homologue, the parabigeminal nucleus, are all visual centers, which receive information from the ipsilateral tectum and project back either ipsilaterally or bilaterally depending on species, but not an auditory center as suggested before. On the other hand, the isthmotectal pathways exert dual, both excitatory and inhibitory, actions on tectal cells in amphibians and reptiles. In birds, the magnocellular and parvocellular subdivisions of this nucleus produce excitatory and inhibitory effects on tectal cells, respectively. The excitatory pathway is mediated by glutamatergic synapses with AMPA and NMDA receptors and/or cholinergic synapses with muscarinic receptors, whereas the inhibitory pathway is mediated by GABAergic synapses via GABA(A) receptors. Further studies have shown that the magnocellular and parvocellular subdivisions can differentially modulate the excitatory and inhibitory regions of the receptive field of tectal neurons, respectively. Both the positive and the negative feedback pathways may work together in a winner-take-all manner, so that the animal could attend to only one of several competing visual targets simultaneously present in the visual field. Some behavioral tests seem to be consistent with this hypothesis. The present review indicates that the tecto-isthmic system in birds is an excellent model for further studying tectal modulation and possibly winner-take-all mechanisms.