This work extends previous investigations into cell interactions involved in specific morphogenetic events during the development of normal and mutant (amputated) mouse embryos. In the mutant mesenchyme, cells tend to clump together and form far more extensive areas of cell contact than are found in normal mesenchyme. This is confirmed for mutant facial mesenchyme. Facial outgrowth in the mutant is retarded. The first stages of this abnormality can be seen in the naso-frontal region at 10.5 days after conception. Neither the quantity of cells contributing to naso-frontal outgrowth nor cell proliferation in the naso-frontal region differ from normal in the mutant, and these factors can be eliminated as causes of the anomaly. Instead, cell clumping and increased areas of contact in the mutant arrest the normal expansion of the naso-frontal mesenchyme which presumably occurs as a result of increased secretion of intercellular matrix material between 9.5 and 10.5 days of development. The importance of this early expansion phase for facial development has not previously been recognized.