SIV was not dissociated from infected Antheraea eucalypti cells by washing at times later than 10 hours after inoculation. Viral DNA was synthesized in cytoplasmic foci which also contained antigen. Each infective unit (IU) of virus formed a separate focus, but supernumerary foci were formed in some cells. The initiation of viral replication was a random process consistent with Cairns' (1960) theory of asynchrony. Once replication was initiated in a multiply infected cell, all the foci began to operate at about the same time. Synthesis of viral DNA and antigen was detected in some cells 2 days after inoculation; most infected cells had begun viral replication by 6 days and continued to synthesize viral DNA for a further 2 days. Inhibition of host cell nuclear DNA synthesis was not a prerequisite for viral DNA synthesis. Infective virus was eclipsed for about 4 days after inoculation and was then continuously produced and released from the cells until the 8th day. The yield was about 500 IU per infected cell, of which about 360 IU/cell was released. SIV was ether resistant. It is proposed that iridescent viruses from a group separate from adenoviruses.