The structural alterations of monogalactosylceramides in peripheral nerve were investigated during development, nerve fiber degeneration and regeneration. During early development, hydroxy cerebrosides and sulfatides were the main constituents of the monogalactosylceramides of immature rat sciatic endoneurium. The ratio of hydroxy to nonhydroxy cerebrosides decreased rapidly as myelination proceeded but remained fairly constant throughout adulthood. More than 50% of the adult content of endoneurial monogalactosylceramides was achieved before 21 days of age. The long-chain nonhydroxy fatty acids (above C21) had increased from under 20% to over 80% by day 20, while 24h:0 (h, hydroxy) had already reached approximately 50% of hydroxy cerebrosides by day 12. These results suggest that the biosynthesis of endoneurial monogalactosylceramides and fatty acid elongation take place preferentially at the time when peripheral nerve is undergoing active myelination. During Wallerian degeneration, the maximum decrease of monogalactosylceramides was associated temporally with axonal degeneration and demyelination and particularly with myelin conversion to sudanophilic lipids. By the time that nerve fiber regeneration was well established, both the cerebroside and sulfatide contents had returned to near control values. Cerebrosides and long-chain fatty acids (above C21) appear to be the most sensitive to fiber degeneration while fatty acid elongation is selectively increased during nerve regeneration.