A strain of paravaccinia virus (66/1456Sc) was isolated from nasal flushings and pharyngeal swabbings collected from one calf involved in an outbreak of a respiratory disease syndrome which occurred in a group of 20 stabled cattle. The isolate appeared to be a lipovirus of the DNA type, pH 3 labile, heat sensitive, and not affected by either 2-(alpha-hydroxybenzyl)-benzimidazole in a concentration of 50 μg per ml or by a 0.125% solution of trypsin. The isolate multiplies in bovine embryo kidney (BEK) cell cultures, producing CPE characterized by the formation of “closed plaques” and intracytoplasmic inclusions. It possesses morphologic characteristics peculiar to those of the paravaccinia viruses, and dimensions of approximately 280 by 160 mμ. The virus is devoid of hemagglutination or hemadsorption activity, and failed to infect sheep, rabbits, or mice, or to produce lesions on the CAM of fertile hens' eggs. Cattle inoculated intranasally, intravenously, or intramuscularly with the isolate, or by the intradermal route in the neck or muzzle, remained clinically healthy. However, when inoculated into the submucosa of calves, or intradermally into the teats of milking cows, the virus produced small ulcerative lesions in the former and erythematous nodules in the latter animals. Neutralizing antibodies were not produced by any of the animals injected with the agent, except by rabbits in one of three attempts. The virus under study was partially neutralized by antiserum to a strain of pseudo-cowpox virus, but no serologic crossing occurred between the isolate and antiserums to any of the following viruses: parainfluenza-3, vaccinia, bovine viral diarrhea, infectious bovine rhinotracheitis, pseudorabies, Shope fibroma, or sheep pox. The isolate reactivated heat-inactivated Lancy-Vaxina strain of vaccinia virus in CAM and BEK cell cultures. Studies of the isolate in cattle indicate that it was not responsible for the respiratory signs observed in the disease outbreak from which it was isolated.