The following description of the effects of lethal and sublethal continuous radiation on the bone marrow, lymphoid tissue, and blood of chick embryos and developing chicks, by means of the isotope P32, is the second part of a study embracing all the tissues in these subjects and including measurements of the localization of the agent within the tissues (2). The findings described in the first report were briefly as follows: Radiation caused an over-all growth retardation resulting in small but well proportioned birds. Both testes and ovaries were very radiosensitive, the primitive germ cells being the most sensitive element. The sper-matogenic cells of the testes remained extremely sensitive to radiation throughout their development, while the ova became more radio-resistant as they matured. Bone growth was retarded by radiation. The cartilage cells of the epiphyses were much more radiosensitive than the osteoblasts and osteoclasts. After irradiation ceased, the histologic changes were reversible and the bones regained a normal histologic structure but remained dwarfed. Materials and Methods P32 combined as KH2P04 was injected into eggs which were incubated under the usual conditions of 38-39° C. and 70–80 per cent relative humidity. The incubated eggs were divided into groups according to the amount and time of injection. Injections varied in amount from 47.5 μc to 300 μc. At regular intervals embryos and birds were selected at random from each group, killed by decapitation, and studied histologically. In order to study radiation effects later in the course of development, subcutaneous injections of approximately isotonic solution of P32 as KH2PO4 were made into twenty-four chicks after hatching. Doses varied from those producing no histologically demonstrable effects to those causing death. The smallest dose was 115 μc, the largest 3,696 μc. Effect of Radiation on Bone Marrow Radiation had its crucial effect on the blood-forming tissues. The concentration of the radioactive substance within the bones caused heavier irradiation of bone marrow than of other tissues. Hematopoiesis takes place during the early part of incubation, largely in the blood islands of the vitelline sac. Between the tenth and twelfth day of incubation, the bone marrow begins its hematopoietic function, and several days before hatching it is the chief source of red blood cells and granulocytes. Blood-forming marrow develops in all bones, but the greatest number of hematopoietic cells is found in the long bones and vertebral bodies. The liver and spleen do not appear to be of importance in hematopoiesis in the embryo or young chick. Erythrocytes form within endothelial-lined sinuses of the bone marrow, apparently in communication with the circulation, and enter the circulation when they are mature. Granulocytes are formed in the intersinusoidal spaces and after reaching maturity migrate into the circulation.