Nervous system tumors were induced in the offspring of BD-IX (inbred) and CFE (non-inbred) rats by transplacental administration of ethylnitrosourea. Tumors of the peripheral nervous system (PNS) were obtained in approximately 80% of all animals, and tumors of the central nervous system (CNS) in 16%. Although several peripheral nerves were sites of tumor formation, the trigeminal nerve was the most frequent nerve affected. In male CFE rats, 70% of all PNS tumors affected the trigeminal nerve. The incidence of trigeminal nerve tumors in female BD-IX rats was only 33% of PNS tumors. Light and electron microscopy showed that the PNS tumors are made-up of Schwann cells, and behave like malignant tumors. The tumors began as a proliferation of recognizable Schwann cells, later they lost their basement lamina, destroyed the nerve tissue and invaded neighboring structures, but did not metastasize. Like their human counterparts, they showed “dense” and “loose” areas. In both of these, Schwann cells were recognized as the tumor cells. Trigeminal nerve tumors were transplanted fromin vitro cultured cells or directly from transplanted fresh tumor fragments to isologous rats (BD-IX). Subcutaneous. intraperitoneal and intracerebral transplants were done. The morphology and behavior of the transplanted tumors were similar to the original malignant neurinomas.