all-trans Retinoic acid is a metabolite of vitamin A and a ligand for retinoic acid receptors (RARs) with IC₅₀ values of 9, 3, and 10 nM for RARα, RARβ, and RARγ, respectively, in radioligand binding assays. It induces expression of a luciferase reporter in COS-7 cells expressing RARα, RARβ, or RARγ (EC₅₀s = 169, 9, and 2 nM, respectively). all-trans Retinoic acid reduces papilloma formation induced by phorbol 12-myristate 13-acetate  in mice. It reduces bile duct proliferation, hydroxyproline levels, and liver inflammation in a rat model of α-naphthylisothiocyanate-induced chronic cholestasis and reduces plasma levels of alkaline phosphatase and bile salts in the Mdr2^-/- mouse model of cholestasis. all-trans Retinoic acid also reduces hepatic fat accumulation, triglycerides, body weight, and serum glucose levels in mice with Western diet-induced obesity.

Retinoic acid is an endogenous agonist for retinoic acid receptors (IC₅₀ = 14 nM for RARα, RARβ and RARγ receptors). Also promotes differentiation of mouse embryonic stem cells (ESCs) into adipocytes, neurons and glia in vitro. Proposed ligand of RORβ (K_d = 280 nM). Activates autophagy.

Retinoic acid is used in dermatology drugs. It is used in the treatment of psoriasis, ichthyosis, follicular keratosis, acne, lichen planus, verrucous epidermal nevus and lichen psoriasis. It is also employed in promoting the proliferation and differentiation of epithelial cells. In addition to this, it exhibits some preventive effect on skin cancer.