The development of eyes in Drosophila involves intricate epithelial reorganization events for accurate positioning of cells and proper formation and organization of ommatidial clusters. We demonstrate that Branchless (Bnl), the fibroblast growth factor ligand, regulates restructuring events in the eye disc primordium from as early as the emergence of clusters from a morphogenetic front to the cellular movements during pupal eye development. Breathless (Btl) functions as the fibroblast growth factor receptor to mediate Bnl signal, and together they regulate expression of DE-cadherin, Crumbs, and Actin. In addition, in the eye Bnl regulates the temporal onset and extent of retinal basal glial cell migration by activating Btl in the glia. We hypothesized that the Bnl functions in the eye are Hedgehog dependent and represent novel aspects of Bnl signaling not explored previously.