Epithelial cells frequently display--in addition to the common apical-basolateral polarity--a polarization within the plane of the epithelium. This is commonly referred to as planar cell polarity (PCP) or tissue polarity. Examples of vertebrate PCP include epithelial patterning in the skin and inner ear, and also the morphogenetic movements of mesenchymal cells during convergent extension at gastrulation. In Drosophila, all adult epithelial structures of the cuticle are polarized within the plane. This review presents recent results and new insights into the molecular mechanisms underlying the establishment of PCP, and compares and contrasts the intriguing similarities between PCP signaling in Drosophila and vertebrates.