Six foals of three different breeds, born to healthy mares, appeared normal at birth, and died at two to five days of age with icterus, ataxia, head pressing, and terminal hepatic coma. Their livers were less than one-half normal weight. Most of the liver was dark red-brown and slightly rubbery. Histologically, these areas were characterized by severe bile ductule proliferation, mild portal tract fibrosis, and massive hepatocellular necrosis and lobular collapse. A small proportion of the liver, usually on the peripheral part of the lobes, was grossly light brown and slightly raised. Histologically, these areas had mild to severe bile stasis in canaliculi. In the thin marginal zone between the severely affected and mildly affected liver, there was mild bile ductule proliferation and periportal fatty change and necrosis. Alzheimer's type II cells, characteristic of hepatoencephalopathy, were numerous in the brains of all foals. Within two hours after birth, all the foals had been given an oral proprietary nutritional paste, the ingredients of which included a viable Aspergillus sp and an iron compound. Similar lesions were produced in an experimental foal.