Administration of Pro-Leu-Gly-NH2 (MIF) and cyclo (Leu-Gly) blocked the development of tolerance to and physical dependence on morphine, induced by the pellet implanation procedure in mice. Inhibition of tolerance development by peptides was evidenced by the presence of an analgesic response (increase in jump threshold) as determined by measuring the jump threshold to an increasing electric current, after a challenge dose of morphine (40 mg/kg). The same dose of morphine did not alter the jump threshold in morphine tolerant mice which were injected with saline prior to pellet implantation. The inhibition of the development of physical dependence on morphine by these peptides was evidenced by the antagonism of the hypothermic response which occurs during abrupt or naloxone-induced withdrawal. The naloxone-induced withdrawal jumping response was unaffected by these peptides. Dose-response experiments indicated that cyclo (leu-Gly) was much more potent than MIF in these tests. These peptides, when given after the development of tolerance and dependence, did not modify either the analgesic response to morphine or the symptoms of abrupt and naloxone-precipitated withdrawal. The inhibition of development of analgesic tolerance and physical dependence was not associated with changes in brain morphine concentration. The data indicate that these peptides do not interfere withe the morphine-morphine receptor complex formation but alter a subsequent step in the genesis of some aspects of tolerance and dependence processes.