This study was carried out for investigation of an outbreak in Karachi. A disease outbreak in poultry was reported during April, 2000 in Karachi. The main symptoms included respiratory distress, sneezing and gasping. Autopsy of dead birds showed tracheitis, air-sacculitis and involvement of lungs. The morbid material was collected for processing in the laboratory. During the investigation for isolation of pathogenic bacteria or virus, Ornithobacterium rhinotracheale was isolated on 5% sheep blood agar plates in an atmosphere containing 5-10% CO2 at 37 degree C and identified through biochemical and fermentation tests. A Lasota like virus was also isolated from the same material which showed HA activity but was found negative to Avian Influenza virus against known Avian Influenza serum. The isolated virus was sent to Central Veterinary Laboratory, Weybridge, U.K. which confirmed it to be Lasota virus having comparatively high Intracerebral Pathogenicity Index (ICPI) as 0.90. Attempts for the transmission of the disease in susceptible healthy broiler chicks was successful through aerosol route using combination of inoculum of the isolated bacteria and virus. On post-mortem of infected birds air- sacculitis, tracheitis and unilateral pneumonia were noticed. Again ORT and NDV were isolated from the material harvested from these chicks. According to the observations of these experiments, it was concluded that the isolated ORT had a triggering effect on Lasota virus or vice versa. The environmental temperature and other stress factors might have aggravated the disease problem.