After contact exposure to Strain RPL-40 avian leukosis virus-infected hatchmates, a dilatory neutralizing antibody response and prolonged RPL-40 viremia was found among most pullets that were congenitally infected with endogenous virus 21 (EV21). Conversely, most of the hatchmates that were not congenitally infected seroconverted within 10 wk after exposure to Strain RPL-40 virus. Compared with noncongenitally infected hatchmates, EV-21 infection-induced tolerance to pathogenic avian leukosis viruses was reflected in a significantly higher incidence of lymphomas in congenitally infected hens. The rate of seroconversion and the incidence of RPL-40 virus-induced tumors among noncongenitally infected daughters from slow-feathering dams homozygous resistant to EV were similar to those found among daughters of rapid-feathering dams that lacked genetic locus ev21. Results suggest that selection for resistance to EV may eliminate tolerance toward oncogenic field strains of avian leukosis viruses and may improve the performance of progeny from a feather-sex cross.