The amplitude of the b-wave of the electroretinogram (ERG) varies with a circadian rhythm in the green iguana; the amplitude is high during the day(or subjective day) and low during the night (or subjective night). Dopamine and melatonin contents in the eye are robustly rhythmic under constant conditions; dopamine levels are high during the subjective day, and melatonin levels are high during the subjective night. Dopamine and melatonin affect the amplitude of the b-wave in an antagonistic and phase-dependent manner: dopamine D2-receptor agonists injected intraocularly during the subjective night produce high-amplitude b-waves characteristic of the subjective day, whereas melatonin injected intraocularly during the subjective day reduces b-wave amplitude. Sectioning the optic nerve abolishes the circadian rhythms of b-wave amplitude and of dopamine content. The results of this study suggest that in iguana, a negative feedback loop involving dopamine and melatonin regulates the circadian rhythm of the ERG b-wave amplitude that is at least in part generated in the brain.