1. 1. Glucagon stimulated gluconeogenesis from glutamine in isolated liver cells to a far greater extent than that form any other amino-acid precursor. 2. 2. Low concentrations of ammonium chloride (>1 mM) stimulated glucose production from glutamine. Glucagon further stimulated this glucose production, even in the presence of saturating concentrations of ammonium chloride. 3. 3. In agreement with previous reports, glutamine hydrolysis by isolated mitochondria was found to be stimulated by ammonium chloride. It was found that ammonium chloride activated mitochondrial glutamine hydrolysis at the same concentrations at which it stimulated glucose production from glutamine in liver cells. The effective activation of glutamine hydrolysis by ammonium chloride in intact mitochondria was partially inhibited by rotenone and was abolished by uncoupling agents. 4. 4. The addition of glucagon to hepatocytes metabolising glutamine led to a decrease in the intracellular concentration of glutamine and an increase in the intracellular concentration of glutamate. 5. 5. It is likely that glucagon stimulates gluconeogenesis from glutamine by mechanisms which are additional to those that may operate in the stimulation of gluconeogenesis fro other amino-acid precursors. It is suggested that both ammonium chloride and glucagon exert their effects on glutamine metabolism by increasing the effective activity of mitochondrial glutaminase (EC 3.5.1.2).