The distribution of substance P was demonstrated by immunohistochemical methods, and receptor binding with 125I-8-iodinated 8-tyrosine-substance P as an analog was used to describe possible specific binding sites in the hypothalamo-hypophysial system of the rat. The immunohistochemical experiments showed fibers exhibiting substance P-immunoreactivity in the external and internal layer of the median eminence. In the external layer some of the fibers were located in apposition to the portal capillaries. In the posterior pituitary substance P-immunoreactive fibers were identified. These terminals varied in size and were located near the capillaries as well as in the neuropil. The anterior lobe contained a number of substance P-immunoreactive fibers distributed around the pituitary cells. The kinetic analysis on crude membrane fractions from anterior and posterior pituitaries revealed the presence of a specific binding site for substance P in the anterior pituitary. These data indicate that substance P may be released from the median eminence and posterior pituitary to the vascular system and reach specific receptors in the anterior pituitary. However, a direct innervation of the anterior pituitary is possible. The lack of binding sites in the posterior pituitary indicates that fibers in this organ release substance P into the blood stream.