The possible development of type-1 hypersensitivity reactions in the abomasal mucosa caused by soluble L3 products of Ostertagia ostertagi was studied in 4-month-old calves sensitized by repeated exposure to L3 over a 50-day period followed by anthelmintic treatment. Four groups each of 4 calves were used. Group 1 served as nonsensitized controls and group 2 as sensitized controls, group 3 was challenge exposed at 2-week intervals beginning at week 10 with a soluble L3 product (OAG), and group 4 was challenge exposed at 2-week intervals with an oral dose of L3, followed by anthelmintic treatment 3 days later. All calves infected with L3 became sensitized, as indicated by a positive reaction to an intradermal skin test. However, a passive cutaneous anaphylaxis was only partly effective in indicating the presence of homocytotropic antibody in the infected calves. Sensitized calves had significantly (P < 0.05) higher eosinophil counts and plasma pepsinogen values for the entire 14 weeks than uninfected controls. Globule leukocyte and mast cell counts from the abomasal mucosa were also significantly (P < 0.05) higher. Studies for possible immunomodulation revealed that lymphocyte counts decreased between every 2-week challenge-exposure period for groups-3 and -4 calves. A transient depression of blood lymphocyte (BL) responses to phytohemagglutinin (PHA), a T-cell mitogen, was observed over the first 8 weeks in the infected calves. Increases in BL responses to OAG were also observed. Differences were not observed in BL responses to pokeweed mitogen, a T- and B-cell mitogen. Blood lymphocyte responses to PHA in group-3 calves were low following the initial challenge exposure with OAG. The sensitized calf lymphocytes did not have suppressive activity on the response of control calf lymphocytes to PHA. Differences were not observed in lymphocyte responses to PHA in a suppressive assay done on abomasal lymph node lymphocytes. Increases in abomasal lymph node mass and lymphocyte responses to PHA, pokeweed mitogen, and OAG were observed in all sensitized calves. Histologic examination of abomasal lymph node sections from challenge-exposed calves revealed increased mitotic activity in germinal centers. Plasma pepsinogen values in groups 3 and 4 increased between each challenge exposure, which further suggested that type-1 hypersensitivity reactions had occurred in the abomasal mucosa, resulting in increased permeability and leakage of macromolecules.