A BSTRACT: A review is given of the application of ESR spectroscopy to the study of hydrated transition metal ions and nitroxide spin probes in the interlamellar region of smectites and vermiculites. These investigations have not only provided information regarding the structure and mobility of the intracrystalline water-cation layers but have also demonstrated the reactivity and catalytic properties of certain transition metal exchange forms of smectites. Several novel coordination complexes and redox reactions between the exchange ions and a variety of simple organic molecules have been characterized.The application of ESR spectroscopy to studies of paramagnetic ions and defect centres occurring in aluminosilicate lattices or on external clay particle surfaces was discussed in Part I of this review (Hall, 1980). Apart from these investigations, considerable attention has also been focussed on the characterization by ESR of the nature of the interlamellar water-cation layers in hydrated smectites and vermiculites. These studies, which are reviewed here, are based on the fact that when paramagnetic (transition metal) exchange cations are present in these clays, their ESR spectra serve as sensitive probes of both structural and dynamic properties of the local environment of the ions.Structural information may be derived from the symmetry and orientation-dependence of the ESR spectra. Information regarding the orientation of the symmetry axes of the complex ions can be obtained by working with preferentially-orientated films aligned either parallel or perpendicular to the magnetic field (Angel & Hall, 1973;Clementz et al., 1973).ESR spectra can also probe the dynamic properties of ions or radicals in solution-like environments, yielding information such as rotational correlation times or diffusion coefficients. In general, the elucidation of such information requires the presence of a species having anisotropic g-values (and preferably also anisotropic hyperfine splittings). If the paramagnetic ion is in a quasi-crystalline environment, i.e. is effectively immobile on the time-scale of observation of the ESR experimenL the direction-dependence of the spectrum will be seen in oriented samples. In contrast, if the ion is in a solution-like environment of low viscosity, and rapidly tumbling with a correlation time considerably shorter than the observation time, complete averaging of the anisotropic components of the spectrum will occur, giving effective spectral parameters g -l(gx+gy+gz) and A = 13(A~ + Ay + A~). In intermediate cases, where the mobility is on a time-scale comparable with the observation time, only a partial averaging of the spectrum will occur. In