Abstract. Prostaglandin E2 (PGE2) has a potent bone resorbing activity in vitro, but some recent studies have shown that PGE2 stimulates bone formation in vivo. The effects of PGE2 on the bone are therefore still controversial. We attempted to reveal the effects of PGE2 on bone in vivo more directly; we injected PGE2 continuously into the bone marrow and onto the periosteum and examined the local effects of PGE2 histologically or by bone densitometry. Following PGE2 infusion into the bone marrow, new bone was formed in the bone marrow around the infused site and following PGE2 infusion onto the periosteum, extensive periosteal bone formation was observed. Bone mineral content was also increased significantly in the PGE2 infused bones. The administration of cyclic AMP did not mimic the effects of PGE2. In contrast to in vitro experiments, the in vivo effect of PGE2 is predominantly to produce bone. PGE2 and 8-bromo-CAMP (8-B-cAMP) were purchased from Sasaki Chemical Co., Ltd. (Kyoto, Japan). PGE2 was dissolved in ethanol and diluted in phosphate buffered saline (PBS; pH 7.4) with 1% heat-inactivated bovine serum albumin (dilution buffer) for use. 8-bromo-cAMP was diluted in dilution buffer for use.