An experiment was conducted to examine the development of a movement sequence representation and the role of eye-movements during observational and physical practice. The task was to reproduce a 1300ms spatial-temporal pattern of a sequence of elbow flexions and extensions. An inter-manual transfer design with a retention and two effector transfer tests (contralateral limb) was used. The mirror transfer test required the same pattern of homologous muscle activation and a sequence of joint angles as experienced during the acquisition phase, and the non-mirror transfer test required the same visual-spatial pattern as performed or observed during acquisition. Participants were randomly assigned to one of four groups differing in eye-movements (free to use their eyes vs. instruction to fixate) and the practice type (observational practice vs. physical practice). The results indicated that permitting to use eye-movements facilitates sequence learning. This advantage was found on both practice types. The results of the transfer tests indicated that participants of the physical practice group who were permitted to use their eyes demonstrated superior transfer performance in the mirror transfer test, while participants in the observational practice group demonstrated better performance on the non-mirror transfer test. These findings indicated that eye-movements enhanced the development of a visual-spatial representation during observational practice as well as a motor representation during physical practice.