1. A filterable virus from certain cases of primary atypical pneumonia was transmitted to chick embryos by inoculation into the amnion of suspensions of bacteriologically sterile lung tissue or filtered sputum, and three strains were adapted by passage. 2. After intranasal inoculation into cotton rats or hamsters, suspensions of the infected chick embryo tissues produced pulmonary lesions which were similar to those seen after instillation of infective human material. 3. The agent propagated in chick embryos was specifically neutralizable by serum from patients recovered from primary atypical pneumonia and was not neutralized by the acute-phase specimens. 4. Passages of the virus in cotton rats and hamsters gave confusing results because of contamination with latent respiratory agents already present in the animals.