Rumen microorganisms utilize tryptic peptides from Chlorella protein, forming carbon dioxide, volatile fatty acids, and bacterial protein. Peptide carbon is more efficiently converted into bacterial protein than is amino acid carbon. A progressive degradation of the peptides was demonstrated by use of columns of Sephadex G-25. Nitrogen metabolism by rumen microorganisms has been extensively studied with respect to the breakdown and utilization of protein and amino acids (2, 14). Amino acids are known to accumulate in low concentrations in rumen fluid (1, 4, 8, 13). Recently, Pittman and Bryant (10) found that Bacteroides ruminicola utilizes nitrogen from ammonia or peptides but not from amino acids. Since peptides are the initial product of proteolysis and stimulatory to many microorganisms (6, 7, 9, 11), it seems possible that they may play an important role in the nitrogen economy of the rumen.