Retinoic acid is derived from vitamin A found in foods like squash and carrots. It plays an essential role in the development of organs like the heart, lungs, kidneys, brain, spinal cord, limbs, and retina. Too little retinoic acid can cause birth defects like cleft palate. The pathway involves retinol entering a cell and being converted to retinoic acid, which then binds to receptors in the cell nucleus to regulate gene expression.