The placenta plays a key role in the nutrition of the fetus. It mediates the active transport of nutrients and metabolic wastes across the barrier separating maternal and fetal compartments, as well as modifying the composition of some nutrients through its own metabolic activity. The function of the placenta is essential to the growth of a healthy fetus; it is becoming apparent that the activities of the placenta are in turn modulated by signals originating from the fetus. Communication between placenta and fetus is especially critical in intrauterine growth retardation. The importance of the interaction of factors like insulin-like growth factor and epidermal growth factor with their receptors is becoming increasingly clear.