Newborn foals of mares grazing on Acremonium coenophialum-infected fescue pasture throughout gestation or from gestation day 300 to parturition had increased gestation duration and decreased serum triiodothyronine concentration. Pregnant mares were allotted to 4 treatments: grazing continuously on endophyte-free (E-) fescue, grazing continuously on endophyte-infected (E+) fescue, grazing on E+ fescue from gestation day 300 to parturition, and grazing on E+ fescue from conception to gestation day 300. Morphometric studies indicated that foals born to mares exposed to endophyte late in gestation had large, distended thyroid follicles lined by flat cuboidal epithelial cells. Mean triiodothyronine concentration in foals exposed to endophyte (395.2 ng/dl) was decreased (P < 0.01), compared with mean values in control foals (778.0 ng/dl). Thyroxine and reverse triiodothyronine concentrations were not significantly different among groups. Foal organ weight as a percentage of foal body weight was not significantly different among experimental groups.