Inside the uterus, the blastocyst implants in the wall of the uterus, where it develops into an embryo attached to a placenta and surrounded by fluid filled membranes. The embryo develops within the amniotic sac, under the lining of the uterus on one side. This stage is characterized by the formation of most internal organs and external body structures. Most organs begin to form about 3 weeks after fertilization, which equals 5 weeks of pregnancy.