In this study, we provide molecular, genetic and phenotypic evidence for the unique, overlapping and synergistic interaction between the hairy Enhancer of split-related [h/E(spl)] transcription factor (TF) MEGANE (MGN, HELT, HESLIKE) and the proneural TF MASH1 (ASCL1) for the acquisition of midbrain GABAergic identity. By combination of gain- and loss-of-function experiments in the developing mouse midbrain, we discovered a novel dorsal/ventral specification mechanism by which MGN and MASH1 cooperation induces GABAergic identity. These results provide a novel paradigm how [h/E(spl)] and proneural families can cooperate for the acquisition of midbrain GABAergic neuronal identity.