The pancreas of the newborn opossum consists of a central region of forming islets surrounded by primitive tubules that end in proacinar cells. Paratubular buds, which are outgrowths from the tubular epithelium, characterize the newborn pancreas and eventually give rise to both exocrine and endocrine units. 4 days after birth, definite intralobular ducts, acini and centroacinar cells are observed. In addition to the central expanding islets (primary islets), endocrine cells are observed singly or in small groups in the ductal epithelium. The endocrine cells are believed to originate from the terminal cells of the ductal epithelium and, throughout the entire postnatal period, retain a close association with the exocrine epithelium. With the simultaneous proliferation of both endocrine and exocrine components from the ductal system, the majority of the islets observed at 24 days (5.0 cm) appear to be surrounded by a single layer of acinar cells. As acini develop and the ducts expand toward the periphery, this layer of acinar cells separates from the developing islets, the majority of which have become localized within the centers of lobules to form the secondary islets by the 10.0-cm stage (59 days). A marked development of lobules is observed by the 13.0-cm stage and the majority of acinar cells now are filled with zymogen granules. Acinar cells continue to proliferate late into the postnatal period and the majority of acini exhibit a tubular form in the juvenile and adult opossum.