Complete experimental brachial plexus neurectomy was performed in twenty four, 2-3 days old newly born rabbits. Clinical, radiological, macroscopic, electron-microscopic histopa-thological changes in the muscle and periosteum as well as changes in length and thickness of the long bones were recorded 3, 6 and 12 months postoperatively. The data indicated slight reduction in length of the denervated long bones by 2.6% and con-siderable reduction of the thickness by 15% in the first 6 months of age. The initial growth retardation did not show compensation 12 months post operatively. The histopathological findings indicated signs of degeneration in the denervated muscles. The periosteum showed abundant vascularity with intact nerve fibers accompanying the perio-steal blood vessels originating from the intact autonomic nervous system. These nerves fi-bers played an important role in regulating the bone blood flow.