SUMMARY. A survey is made of the milk‐molars of Perissodactyla and Condylarthra with a view to determining the evolutionary trends. Molarization of the milk‐molars takes place in a variety of ways, which may be grouped into three main types: (a) the condylarthran type, found also in Plagiolophus, (b) the type found in the Equidae and Brontotheriidae, and (c) that found in the Tapiroidea and Rhinocerotoidea. Each of these types has a characteristic order of development of the cusps. The condylarthran type is considered to be the most primitive. From a study of the wear of the teeth, it is concluded that the occlusal movement in all Perissodactyla is transverse (ectal). The characteristic features of occlusion in the various families are discussed. During molarization the talonid becomes intercalated between two trigonids, the intercalation taking place at a relatively late stage in type (a), earliest in type (b) and at an intermediate stage in type (c). The buccal parts of the trigonid and talonid become functional before the lingual parts. The Palaeotheriidae (excluding Pachynolophus and Propachynolophus) are regarded as a distinct family that retains condylarth features of the milk dentition to a late date, and cannot be derived from Hyracotherium. With the exception of Plagiolophus, they show in their milk‐molars transitional stages leading to the conditions found in other perissodactyls. The hypothesis is put forward that the order of development of the cusps depends upon their different sensitivities to the graded morphogenetic conditions in the developing jaw. Correlated evolution of the upper and lower teeth suggests that occlusion has a morphogenetic basis which affects both jaws. The concepts of homology due to descent from a common ancestral structure, homology due to parallel evolution, and serial homology are considered to be closely related and not sharply separable in practice.