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Histologic sections and case histories from 23 dogs with proven fatal toxoplasmosis-like illness at the Angell Memorial Animal Hospital were reviewed. Toxoplasma gondii was identified in 13 dogs. A newly identified parasite, Neospora caninum, structurally distinct from T gondii, was found in 10 dogs. The newly discovered organism, belonging to a new genus and new species, formed meronts in many tissues of the dogs, especially the brain and spinal cord. Neospora caninum was located directly in the host cell cytoplasm without a parasitophorous vacuole; it divided by endodyogeny, contained more than 11 rhoptries, and did not react with the anti-T gondii serum in the immunoperoxidase test. Meningoencephalomyelitis and myositis were the main lesions associated with N caninum. Ulcerative and fistulous dermatitis was the major lesion in 1 dog.