The oral administration of phenylbutazone at a dose rate of approximately 10 mg per kg per day for seven to 14 days resulted in the development of signs of toxicity in seven of eight ponies treated. Clinical signs included anorexia, depression and abdominal oedema. Blood biochemical determinations showed a decrease in total plasma protein and calcium concentrations with an increase in urea concentration. These changes were considered indicative of water retention. Three of the ponies died during treatment following the development of shock. Shock was considered to arise from the submucosal oedema of the large intestine observed on necropsy. Oral ulceration was also found in these animals. In two ponies intravenous administration of phenylbutazone (4.0 mg per kg) for seven days was studied. In one of these ponies a marked decrease in total plasma protein concentration occurred.