Alveolar macrophages (AM) were recovered by bronchoalveolar lavage from a group of eight calves at various times before and after inoculation with a cytopathic respiratory isolate of bovine viral diarrhoea virus (BVDV). A second group of four calves were given tissue culture medium as a control inoculum. Macrophages were also recovered from two additional, uninoculated calves, and were exposed to BVDV in vitro. Tests were carried out on the recovered macrophages to determine the effects of the virus on several functional properties. Immunofluorescence did not indicate the AM as being readily susceptible to this isolate of BVDV, although infection did occur. Fc receptor (FcR) and complement receptor (C3R) expression, phagocytosis and microbicidal activity and the production of neutrophil chemotactic factors were all significantly reduced in macrophages recovered from BVDV infected calves, compared with pre-inoculation control levels, whereas the control inoculated calves displayed significant increases in some of the functions. With macrophages exposed to the virus in vitro however, only FcR and C3R expression and phagocytic activity were significantly reduced. The results demonstrate that BVDV can reduce local immune defences in the lung, following infection by the respiratory route, and in conjunction with the other immunosuppressive properties of BVDV would favour a pre-disposing role for the virus in the pathogenesis of respiratory disease in calves.