The investigation of neurogenesis in polychaetes not only facilitates insights into the developmental biology of this group, but also provides new data for phylogenetic analyses. This should eventually lead toward a better understanding of metazoan evolution including key issues such as the ontogenetic processes that underlie body segmentation. We here document the development of the larval nervous system in the polychaete Sabellaria alveolata using fluorescence-coupled antibodies directed against serotonin, FMRFamide, and tubulin in combination with confocal laser scanning microscopy and 3D reconstruction software. The overall pattern of neurogenesis in S. alveolata resembles the condition found in other planktonic polychaete trochophores where the larval neural body plan including a serotonergic prototroch nerve ring is directly followed by adult features of the nervous system such as circumesophageal connectives and paired ventral nerve cords. However, distinct features are also found in S. alveolata, such as the innervation of the apical organ with ring-shaped neurons, the low number of immunoreactive perikarya, and the lack of a posterior serotonergic cell. Moreover, in the larvae of S. alveolata, two distinct modes of neuronal development are expressed, viz. the simultaneous formation of the first three segmental neurons of the peripheral nervous system on the one hand versus the sequential appearance of the ventral commissures on the other. This highlights the complex mechanisms that underlie annelid body segmentation and indicates divergent developmental pathways within polychaete annelids that lead to the segmented nervous system of the adult.