Neither the adrenal nor the pituitary gland was essential for the formation of normal amounts of granulation tissue in young female Sprague-Dawley rats in response to a foreign body. In normal, adrenalectomized, or hypophysectomized rats, locally administered cortisone depressed granulation tissue formation whereas growth hormone enhanced it. When applied locally in combination with cortisone, growth hormone counteracted the action of cortisone. Corticotrophine B was not antagonistic to cortisone when applied locally; neither were extracts from non-endocrine beef tissues.