Visual transduction in the Drosophila compound eye functions through a pathway that couples rhodopsin to phospholipase C (PLC) and the opening of transient receptor potential (TRP) channels. This cascade differs from phototransduction in mammalian rods and cones, but is remarkably similar to signaling in mammalian intrinsically photosensitive retinal ganglion cells (ipRGCs). In this review, I focus on recent advances in the fly visual system, including the discovery of a visual cycle and insights into the machinery and mechanisms involved in generating a light response in photoreceptor cells.