Germ cells are the only cells in the body capable of transferring an individual's genetic and epigenetic information to the next generation. However, the developmental processes that provide the foundation for male and female germ line development and later gamete production are complex and poorly understood. In mice the primordial germ cells enter the bipotential gonad at E10.5 and, in response to the testicular or ovarian micro-environment, commit to spermatogenesis or oogenesis. This paper reviews progress in understanding the molecular processes underlying the early stages of male and female germ line development.