Congenitally athymic AKR-streaker (nustr/nustr) mice were grafted separately with syngeneic or allogeneic, irradiated (1200 R) thymic reticuloepithelial (TRE) elements (stroma) or nonirradiated whole thymus grafts (control group) from N-tropic murine leukemia virus (MuLV) infection-susceptible (Fv-1n/n) or N-tropic-MuLV-infection-resistant (Fv-1b/n) murine strains. From 3 to 13 mo after grafting, the mononuclear cells repopulating the thymus grafts were stained with fluorescent monoclonal antibodies to thymocyte differentiation antigens, peanut agglutinin, and an antibody to MuLV antigens and were then analyzed by flow cytometry. Irradiated TRE of the Fv-1n/n genotype, whether from high or low leukemia-incidence strains, contained lymphoid cells of host (nustr/nustr) origin with alterations in thymocyte differentiation and MuLV antigen expression consistent with preleukemic changes. In contrast, transplanted TRE of the low leukemia-incidence Fv-1b/n genotype restricted preleukemic changes in thymocyte differentiation and MuLV antigen expression by lymphoid cells derived from the nustr/nustr host. Thus, nustr/nustr lymphocytes must infect susceptible TRE (Fv-1n/n) with N-tropic-MuLV before preleukemic changes occur in the mustr/nustr lymphocytes that later migrate to the thymus. Therefore, it was the radiation-resistant cells in the thymus that amplified or suppressed expression of AKR MCF retroviruses and the preleukemic phenotype, not the thymic lymphocytes. Thy-1.1+ splenocytes of ungrafted nustr/nustr mice were comparable in percentage to nustr/+ but were deficient in the Lyt-1+2- subpopulation and unresponsive to mitogens or alloantigens in vitro. Analysis of splenocyte cell surface markers, mitogen, MLC, and CML responses of Fv-1n/n-thymus-grafted nustr/nustr mice showed restoration of Lyt-1+2- cells to levels comparable to nustr/+ and reconstitution of in vitro proliferative and cytotoxic responses.