Plants use light as energy for photosynthesis but also as a signal of competing vegetation. Using different concentrations of norflurazon and lincomycin, we found that the response to canopy shade in Arabidopsis (Arabidopsis thaliana) was repressed even when inhibitors only caused a modest reduction in the level of photosynthetic pigments. High inhibitor concentrations resulted in albino seedlings that were unable to elongate when exposed to shade, in part due to attenuated light perception and signaling via phytochrome B and phytochrome-interacting factors. The response to shade was further repressed by a retrograde network with two separate nodes represented by the transcription factor LONG HYPOCOTYL 5 and the carotenoid-derived hormone abscisic acid. The unveiled connection among chloroplast status, light (shade) signaling, and developmental responses should contribute to achieve optimal photosynthetic performance under light-changing conditions.