Glutamate and gamma-aminobutyric acid (GABA) are major excitatory and inhibitory neurotransmitters in the vertebrate retina, "a genuine neural center" (Ramón y Cajal, 1964, Recollections of My Life, C.E. Horne (Translater) MIT Press, Cambridge, MA). Photoreceptors, generating visual signals, and bipolar cells, mediating signal transfer from photoreceptors to ganglion cells, both release glutamate, which induces and/or changes the activity of the post-synaptic neurons (horizontal and bipolar cells for photoreceptors; amacrine and ganglion cells for bipolar cells). Horizontal and amacrine cells, which mediate lateral interaction in the outer and inner retina respectively, use GABA as a principal neurotransmitter. In recent years, glutamate receptors and GABA receptors in the retina have been extensively studied, using multi-disciplinary approaches. In this article some important advances in this field are reviewed, with special reference to retinal information processing. Photoreceptors possess metabotropic glutamate receptors and several subtypes of GABA receptors. Most horizontal cells express AMPA receptors, which may be predominantly assembled from flop slice variants. In addition, these cells also express GABAA and GABAC receptors. Signal transfer from photoreceptors to bipolar cells is rather complicated. Whereas AMPA/KA receptors mediate transmission for OFF type bipolar cells, several subtypes of glutamate receptors, both ionotropic and metabotropic, are involved in the generation of light responses of ON type bipolar cells. GABAA and GABAC receptors with distinct kinetics are differentially expressed on dendrites and axon terminals of both ON and OFF bipolar cells, mediating inhibition from horizontal cells and amacrine cells. Amacrine cells possess ionotropic glutamate receptors, whereas ganglion cells express both ionotropic and metabotropic glutamate receptors. GABAA receptors exist in amacrine and ganglion cells. Physiological data further suggest that GABAC receptors may be involved in the activity of these neurons. Moreover, responses of these retinal third order neurons are modulated by GABAB receptors, and in ganglion cells there exist several subtypes of GABAB receptors. A variety of glutamate receptor and GABA receptor subtypes found in the retina perform distinct functions, thus providing a wide range of neural integration and versatility of synaptic transmission. Perspectives in this research field are presented.