Yersinia enterocolitica biotype 5, serotype 02,3 was isolated from the intestine of 38 sheep and 8 goats submitted to the laboratory for disease diagnosis. Infected animals were usually young, had diarrhoea and were in poor condition or emaciated. A number were moribund or dead when submitted. Characteristic microabscesses were demonstrated in the intestine of 5 of 38 sheep and 3 of 8 goats and no alternative cause of morbidity or mortality was established in these animals. Of the 33 sheep and 5 goats infected with Y. enterocolitica in which microabscesses were not demonstrated, a number of other diagnoses were made, including internal parasitism (18), selenium deficiency or white muscle disease (6) and cobalt deficiency (2), so that morbidity and mortality were possibly unrelated to Y. enterocolitica infection. Five of 6 sheep exposed experimentally by mouth to Y. enterocolitica biotype 5, serotype 02,3 developed an intestinal infection. Although infected sheep showed no clinical evidence of disease and haematological and biochemical indices remained normal, multiple intestinal microabscesses typical of yersiniosis were demonstrated in 3 of 5 infected sheep. It is concluded that Y. enterocolitica biotype 5, serotype 02,3 is an enteropathogen of sheep and goats. Since sheep and goats may be the specific hosts of this bacterium, its virulence for these species is apparently low. Morbidity and mortality may, therefore, be unusual manifestations of infection.