Polarized growth in response to external signals is essential for both the internal organization of cells and generation of complex multicellular structures during development. Oriented growth or movement requires specific detection of an external cue, reorganization of the cytoskeleton and subsequent growth or movement. Genetic approaches in both the budding yeast Saccharomyces cerevisiae and the social amoeba Dictyostelium discoideum have shed light on the molecular and cellular aspects of growth or movement towards an external signal. This review discusses the mechanisms and signalling pathways that enable yeast and Dictyostelium cells to translate external signals into directed growth and movement, respectively.