A method of autotransplantation of duct ligated pancreatic segments has been described. In untreated animals autotransplants underwent significant destruction within 2 weeks after transplantation due to inflammation following ligation of the duct. Insulin production by these grafts was significantly decreased. Radiation and Trasylol failed to prevent these inflammatory and fibrotic changes. Steroids had a protective effect on these grafts, preserving both their morphology and function. Insulin production was preserved and continued exocrine function resulted in accumulation of large volumes of peripancreatic fluid. When glucagon was added to the steroid treatment there was virtually total inhibition of the exocrine function and negligible peripancreatic fluid accumulation, but insulin production continued and the grafts appeared normal morphologically. The implications of the use of high dose steroid therapy and glucagon to prevent the acute damage to duct ligated pancreatic autografts are that major obstacles to the use of this method in allografts can now be removed.