Each year many dogs are accidentally or purposely wounded with shotguns. When lead pellets were used exclusively in the past, clinical problems from chronically embedded shot seldom developed except for rare cases of lead toxicosis. However, because expended lead shot ingested unintentionally by waterfowl and other avian species is fatal, the US Fish and Wildlife Service mandated exclusive use of steel shot for waterfowl hunting beginning in 1991. To discover the effects of implanted steel shot in a biological system, in vitro and in vivo studies were performed. Severe surface corrosion was evident when steel shot was placed in physiologic saline solution and sterile canine plasma. Eight laboratory dogs were surgically implanted with sterile steel shot in various superficial locations for intervals of 2 to 26 weeks. Corrosion of implants and tissue inflammation was observed in all biopsy specimens examined. It has been shown that steel shot embedded in tissues will corrode and result in a severe inflammatory response. If the accompanying inflammation is complicated by bacterial contamination, foreign body reactions resulting in infected, draining tracts could develop. Veterinarians and dog owners should be aware that treatment and prognosis for wounds caused by steel shot may differ from those for similar wounds caused by lead shot.