The spatial resolving power, contrast sensitivity, and receptive field properties of retinal ganglion cells were studied in cats reared with either convergent or divergent squint in one eye. Sustained-X cells in the area centralis of the squinting eye of the cats with esotropia without alternating fixation showed significantly poorer spatial resolution, and reduced contrast sensitivity compared with cells in the area centralis of the normal eye. These amblyopic sustained-X cells in the area centralis of the squinting eye had receptive field characteristics similar to those found in immature cells of young kittens. They had a shallow sensitivity gradient within a relatively widespread centre zone and a weak and widespread inhibitory surround. In contrast, the sustained cells in the area centralis of the normal eye revealed a typical, well defined, small centre zone with its sensitivity gradient extremely steep and its inhibitory surround strong and confined. A minor degree of amblyopia was also found in transient Y-cells in the area centralis of the squinting eye of these cats. However, no loss of resolving power was found in the cells in the area centralis of the squinting eye of the cats with esotropia or exotropia which showed alternating fixation. Thus, amblyopia occurs in those eyes which have lost the use of the area centralis as the normal visual axis during early postnatal development, and its organic lesion is already apparent in the retinal ganglion cells--the third order neurone in the afferent visual system. It is suggested that the loss of the ability to fixate results in inadequate stimulation of the central retinal ganglion cells due to the habitual presence of blurred images at the area centralis which prevents their full development during the critical period.