A new form of toxicity called equine fescue oedema is described. The clinical signs included inappetence, depression, and subcutaneous oedema of the head, neck, chest and abdomen. Affected horses had very low plasma albumin values. The toxicity affected 48 of 56 horses on six farms in different states of Australia, and 4 horses have died. All horses were grazing pastures that had been sown with varieties of Mediterranean tall fescue (Festuca arundinacea) that carry the endophyte known as Max P or Max Q. It is proposed that a pyrrolizidine alkaloid, N-acetyl norloline, which is produced by the Max P endophyte, may be responsible for this new toxicity in horses.