Studies on 17 nephrectomized dogs have shown that the intravenous administration of epsilon amino-caproic acid in a dose range of 0.33 to 1.4 Gm./Kg. of body weight may result in the development of hyperkalemia, with serum potassium levels as high as 10 mEq./L. On the basis of the structural similarity between epsilon amino-caproic acid and lysine and of the known effects of lysine on potassium metabolism, an hypothesis is offered in explanation of the hyperkalemic effects of epsilon amino-caproic acid. It is suggested that epsilon aminocaproic acid is taken up by muscle cells to become an intracellular cation causing the loss of cell potassium. The effects of nephrectomy would be to cause the extracellular fluid concentration of epsilon amino-caproic acid to remain elevated and to prevent the excretion of the liberated potassium. The clinical implications of the observations relate to the possibility that the bleeding patient who acquires hypotension and oliguria may not tolerate epsilon-amino-caproic acid in large amounts and that if liver function is also impaired he may not tolerate it in smaller amounts.