Detailed experience in identifying the appearance of setal fragments which is highlighted under toluidine blue staining allowed in depth examination of tissues from equine abortions submitted for examination in 2012. Five cases were found in which a caterpillar setal fragment was found in the allantochorion confirming that setal fragments migrate from field exposure as well as experimental exposure to processionary caterpillars.The experiments in this thesis have shown histologically for the first time, the ability of Processionary caterpillar setae to penetrate the maternal gut wall and migrate directly into the uterus and placental tissues. This is considered to be the most likely means of translocation of bacteria to the foetal membranes. The direct, rapid migration of setae in as little as two days from ingestion from the gut to the placenta facilitates bacterial infection.Bacteria present in the mare's gut likely attach to migrating setal fragments and translocate through the gut wall, the uterus and the foetal membranes in which they subsequently colonize. Incomplete migration of setal fragments may account for the focal mucoid placentitis induced when mares were exposed in early gestation. Bacterial colonization of 5 the foetal membranes and/or foetus may cause foetal compromise or death and eventual abortion.The variety of manifestations of EAFL due to the migration of setal fragments ranging from acute abortion, chronic active placentitis, stillbirth, compromised preterm and full term foals, and focal mucoid placentitis have a significant impact on the breeding of horses and ultimately the racing industry in Australia.6