Secondary and tertiary derivatives of a P-element insertion allele at the vestigial (vg) locus were induced by hybrid dysgenesis. The derivatives were characterized by Southern analyses and, in four cases, by DNA sequencing. The alterations found were P-element internal deletions, deletions of the insert and/or adjacent vg region DNA, or novel insertions of P-element sequences into existing P-element inserts. The relatively high frequency of secondary insertions into P-element sequences observed herein is unusual, since secondary insertions have seldom been recovered in other dysgenic screens. The effects of the alleles on vg expression were determined. The results are consistent with a model in which the insertions disrupt vg gene expression by transcriptional interference.