In vivo biochemical studies on rabbits have shown that, with the intravenous injection of iron dextran, the rate of liver ferritin formation limits the uptake of iron by this organ. When ferritin production reaches 25‐30 mg. Fe per day, increased rates of iron dextran injection result only in increased serum concentrations of the compound. Regardless of the rate of injection, haemosiderin (insoluble iron) forms at a rate of approximately one‐tenth that of ferritin (soluble iron) until the total liver ferritin iron reaches 150‐200 mg. Therefore, when iron dextran is injected, the rate of haemosiderin formation is limited by the liver ferritin concentration. When this concentration reaches the ‘critical’level of 150‐200 mg. of iron and loading is continued, a process begins whereby ferritin production gradually decreases until the ferritin content of the liver reaches a maximum. Simultaneously the rate of haemosiderin production increases until all subsequent iron deposition is reflected in increased haemosiderin content (Shoden and Sturgeon, 1962a).Histochemical studies have shown that there is no appreciable deposition of stainable iron in the Kupffer cells of the liver when iron dextran is administered intravenously. When saccharated iron oxide is given, however, there is immediate and marked deposition of stainable iron in the Kupffer cells, even when relatively small amounts of iron are injected at slow rates. In contrast to the Kupffer cell insoluble iron, deposition of histochemically demonstrable iron in the parenchymal cells does not begin until the total liver ferritin iron reaches approximately the 150‐200 mg. level. At this level, regardless of the type of iron compound given, faint bluish areas or vacuoles, some of which may contain discrete blue granules, appear in the parenchymal cells. As the iron load is increased beyond this point, the number and size of the parenchymal cell granules increase. When iron dextran is given, the appearance of the blue granules is paralleled by a marked increase in the water‐insoluble iron fraction. Extraction with normal saline of small liver cubes, preceding the fixation and staining, shows that ferritin is removed, but not the haemosiderin granules (Shoden and Sturgeon, 1962b).From the above observations, the hypothesis was advanced that liver ferritin is a precursor of the haemosiderin granules found in the parenchymal liver cells (Shoden and Sturgeon, 1961). The present study was designed to test this hypothesis. It was planned to establish in the two iron storage ‘compartments’(ferritin and parenchymal haemosiderin) known specific activities (concentrations) of radioactive iron. Then, to study the pathway taken by new iron, non‐radioactive iron in form of iron dextran was administered. The sequence in the dilution of radioactive iron in the two compartments, and the shift of radioactivity between them,