Abstract: Liver and pancreas, derived from endoderm, are both important digestive organs. In vertebrate, liver and pancreas extensively take part in metabolism of glycogen, lipids and protein. Their development is a coordinated sequence of processes, and eontrolled by multi-signal pathways and transcription factors. Based on the above-mentioned facts and obviously medical importance, the molecular mechanisms of their development were elucidated in the paper, it will be useful for better understanding of diseases which are relative to liver and pancreas, and it also provide molecular theory for diagnosis and treatment.