Serotonin is localized in the enterochromaffin cells of the gastrointestinal mucosa and within neurons in the enteric nervous system. It can be released into the blood or into the lumen of the gut. Serotonin inhibits gastric acid secretion and may be an endogenous enterogastrone. It appears to stimulate the production and release of gastric and colonic mucus. When placed on the serosal surface of the rabbit ileum in vitro, serotonin increases short-circuit current and inhibits the mucosal-to-serosal flux of NaCl. Serotonin potentially is involved in the pathogenesis of diarrhea due to amoebae or cholera. As an enteric neurotransmitter, serotonin affects neural modulation of gut smooth muscle function and may act either directly on mesenteric vascular smooth muscle or through enteric nerves to influence gastrointestinal blood flow. Thus, since serotonin may be involved in multiple physiological processes of digestion, this report reviews and summarizes the role of this ubiquitous substance in the major functions of the gastrointestinal system.