Grafts of wool-growing trunk skin (wool grafts) and hair-growing inguinal skin (hair grafts) were studied in two black and two black and white adult Merino sheep. Skin growing black wool was transplanted to skin growing white wool and vice versa. Also, skin in both black and white regions was excised and returned to the same site. Inguinal skin was transplanted to black wool-growing skin.The areas of the grafts, which initially ranged from about 1 to 25 cm 2 , decreased to a minimum by 28 days after grafting. Most grafts then expanded slowly and returned to approximately their original size by the end of the experiment (118-194 days after grafting).Grafting caused the temporary cessation of wool and hair growth. Old fibres were shed and new fibres, usually similar in colour, appeared above the skin surface about 28 days after grafting. Each animal was given a series of injections of L-[35Sjcystine and fibres were sampled from the grafts and control regions for length and diameter measurements. The fibres on most of the grafts showed marked increases in length growth rate and diameter, resulting in large increases in volume growth rates. However, the total amount of wool produced by the grafts was usually reduced because grafting caused a loss of follicles.At the end of the experiment, skin samples were taken from the grafts and control regions for microscopic examination. The sebaceous glands were retained in the grafts except those associated with follicles that did not regenerate. The sweat glands and erector muscles were often destroyed by grafting, particularly in the wool grafts. Innervation was greatly reduced. Langerhans cells appeared to be as numerous in the grafts as in control samples. Melanocytes spread from black skin into wool and hair grafts of white skin and were most commonly seen in the epidermis, which increased in thickness. Clumps of pigment in the dermis appeared at the periphery of many of the grafts.