NAD-dependent aldehyde dehydrogenase that catalyzes the formation of retinoic acid (PubMed:11044606, PubMed:11013254, PubMed:14623956). Has high activity with all-trans retinal, and has much lower in vitro activity with acetaldehyde (By similarity). Required for the biosynthesis of normal levels of retinoic acid in the embryonic ocular and nasal regions; retinoic acid is required for normal embryonic development of the eye and the nasal region (PubMed:14623956). all-trans-retinal + H2O + NAD(+) = all-trans-retinoate + 2 H(+) + NADH Cofactor metabolism; retinol metabolism. Homotetramer. Detected in embryonic head (at protein level) (PubMed:14623956). Ventral retina. In mouse embryos, RALDH3 expression is first noticed in the ventral optic eminence at 8.75 dpc, then in the optic vesicle/cup, otic vesicle and olfactory placode/pit from 9.5 dpc to 11.5 dpc. Mutant mice are born at the expected Mendelian rate, but all die within 10 hours after birth (PubMed:14623956, PubMed:23536097). Lethality is due to respiratory distress, caused by choanal atresia, i.e. the lack of communication between the nasal and oral cavities. Mutant embryos at 11.5 dpc lack detectable retinoic acid in the ventral retina, nasal epithelium and in the nasolacrimal groove. At 14.5 dpc mutant embryos display shortening of the ventral retina associated with lens rotation and persistence of the retrolenticular membrane, indicative of retinoic acid deficiency. Still, at 18.5 dpc the ventral retina appears normal. Embryos at 18.5 dpc lack Harderian glands, and display multiple malformations in the nasal region, including choanal atresia, lack of maxillary sinuses and nasolacrimal ducts (PubMed:14623956). Oral gavage of pregnant females with retinoic acid prevents choanal atresia and other malformations of the nasal region (PubMed:14623956, PubMed:23536097). Females that were fed retinoic acid give birth to pups with malformations of the inner ear vestibular organ, causing repetitive circling behavior with head tilting (PubMed:23536097). Likewise, mice display impaired ability in crossing a beam without slipping and an impaired ability to swim (PubMed:23536097). Belongs to the aldehyde dehydrogenase family.