Oil spills have occurred throughout the years of industrialization and represent a global challenge as they affect vast areas of the ocean. The toxicity of crude oil to aquatic organisms has been extensively investigated, but the potential impacts of crude oil on vertebrate development remain largely unknown. Here, we investigated the effects of dispersants used in treating a recent oil spill, as well as that of crude oil, on vertebrates by using the zebrafish (Danio rerio) model species, which has been widely used in empirical studies of both early embryonic development and adult physiology. Chronic exposure to crude oil resulted in marked developmental abnormalities, including pericardial edema, abnormal trunk vessel development, retardation of axonal branching, and abnormal jaw development. Embryonic development was affected more severely by exposure to the oil-dispersant combination than to the oil alone. Thus, the zebrafish in vivo model system suggests that dispersant treatment can have detrimental developmental effects on vertebrates and its potential impact on marine life, as well as humans, should be carefully considered in clean-up efforts at the site of an oil spill.