Bone morphogenetic proteins (BMPs), growth and differentiation factor 5 (GDF5) and glial cell line‐derived neurotrophic factor (GDNF) are members of the transforming growth factor‐β superfamily that have been implicated in tissue growth and differentiation. Several BMPs are expressed in embryonic and adult brain. We show now that BMP‐2, –6 and –7 and GDF5 are expressed in the embryonic rat hindbrain raphe. To start to define roles for BMPs in the regulation of serotonergic (5‐HT) neuron development, we have generated serum‐free cultures of 5‐HT neurons isolated from the embryonic (E14) rat raphe. Addition of saturating concentrations (10 ng/mL) of BMP‐6 and GDF5 augmented numbers of tryptophan hydroxylase (TpOH) ‐immunoreactive neurons and cells specifically taking up 5,7‐dihydroxytryptamine (5,7‐DHT) by about two‐fold. Alterations in 5‐HT neuron numbers were due to the induction of serotonergic markers rather than increased survival, as shown by the efficacy of short‐term treatments. Importantly, BMP‐7 selectively induced 5,7‐DHT uptake without affecting TpOH immunoreactivity. BMP‐6 and –7 also promoted DNA synthesis and increased numbers of cells immunoreactive for vimentin and glial fibrillary acidic protein (GFAP). Pharmacological suppression of cell proliferation or glial development abolished the induction of serotonergic markers by BMP‐6 and –7, suggesting that BMPs act indirectly by stimulating synthesis or release of glial‐derived serotonergic differentiation factors. Receptor bodies for the neurotrophin receptor trkB, but not trkC, abolished the BMP‐mediated effects on serotonergic development, suggesting that the glia‐derived factor is probably brain‐derived neurotrophic factor (BDNF) or neurotrophin‐4. In support of this notion, we detected increased levels of BDNF mRNA in BMP‐treated cultures. Together, these data suggest both distinct and overlapping roles of several BMPs in regulating 5‐HT neuron development.