Dermatitis consisting of blisters on the nose and other parts of the body was reported among horses at a Midwestern horse show. Some horses also had jaundice, hematuria and anorexia. An outbreak investigation was initiated, and of 239 horses for which information could be obtained, 58 (24%) were found to have been affected. Median duration of illness was 5 days, and all horses recovered. Age, sex, water source, grain source, and stabling location were not associated with illness. The use of wood shavings bedding obtained at the show grounds was the factor most strongly associated with the development of vesicular lesions. Horses that became ill were 43 times more likely to have been bedded on wood shavings obtained from the show grounds than were horses that did not become ill. Among horses bedded on shavings from the show grounds, the risk was further increased by a factor of 5 if the shavings had been wetted. Neither organic nor heavy metal toxicants were identified in the samples of the wood shavings. However, samples did contain plant tissues originating from a tree belonging to the family Simaroubaceae, some species of which are known to cause vesicular eruptions in people.