The importance of perivascular–endothelial cell interactions during blood vessel development is discussed in the light of recent findings in platelet‐derived growth factor‐B, platelet‐derived growth factor receptor‐β, angiopoietin‐1 and tie‐2 knockout mice, which all show deficient development of perivascular cells. The initial formation of networks of endothelial tubes (vasculogenesis) does not seem to depend on the perivascular cells but subsequent vessel remodeling relies on mesenchymal–endothelial short‐range signaling. Based on findings in platelet‐derived growth factor and platelet‐derived growth factor receptor knockout mice, a general model for the role of platelet‐derived growth factors in smooth muscle development is proposed. Curr Opin Lipidol 9:407–411. © 1998 Lippincott Williams & Wilkins