Background: In India about 85% of pre-school children show evidence of mild-to-moderate malnutrition. Consequences of severe malnutrition and protein deficiency are well reported by workers but little information is available on milder forms. Methods: Mild-to-moderate protein energy malnourished (PEM) state was induced in 12 monkeys by providing 2.42 g protein and 55 kcal kg<sup>–1</sup> day<sup>–1</sup> while 12 controls were fed 4.84 g protein and 110 kcal kg<sup>–1</sup>. After a 30–40% reduction in body weight as compared with their controls, the animals were killed and brush border membrane vesicles (BBMV) were prepared from three parts of small intestine. Purified vesicles were assayed for gamma-glutamyl-transpeptidase (GGTP), glutathione (GSH) and U-<sup>14</sup>C-glycine uptake. Results: GGTP activity increased significantly while glutathione and uptake of glycine decreased significantly in all the three parts of small intestine. On nutritional rehabilitation of 9 weeks, the activity of GGTP, GSH and in vitro uptake of glycine amino acid recovered completely. Conclusion: The results of the present study indicates that even mild-to-moderate malnutrition should not be ignored during the development state.