Recently, the United Arab Emirates has increased importation of perennial ryegrass (Lolium perenne) straw as part of the grass/hay ration for camels. Unfortunately, perennial ryegrass straw may be infected with the endophyte Neotyphodium lolii which produces lolitrem B, a toxic alkaloid responsible for the disease 'ryegrass staggers.' A range-finding study was conducted using 24 non-pregnant female camels fed four doses (0, 1111, 1478 and 2273 ppb) of lolitrem B-containing perennial ryegrass straw over 56 days to establish a threshold of toxicity in camels so that perennial ryegrass straw can be safely fed as part of their dietary ration. Physiological parameters were evaluated. Neurological deficits were evaluated by videotape and scored according to an established scale for the neurological syndrome ryegrass staggers. Camels in the endophyte-infected groups developed varying degrees of ataxia. Brain edema, degenerative renal and hepatic lesions as well as Purkinje cell vacuolar degeneration were observed in camels receiving the highest dose. To avoid clinical disease in camels, endophyte-infected perennial ryegrass straw should be fed at 500 ppb or lower lolitrem B; straw at 1000 ppb or higher should be diluted to achieve the 500 ppb threshold of toxicity.