Acute toxoplasmosis was diagnosed in 3 gray squirrels (Sciurus carolensis) from Louisiana and Pennsylvania. The predominant lesion was multifocal necrosis in several organs, especially of the lymph nodes. Numerous Toxoplasma gondii tachyzoites were seen in lesions, and the diagnosis was confirmed immunohistochemically by reaction with polyclonal T. gondii-specific antibodies. Tissue cysts were seen in several organs, including lung alveoli. The presence of tissue cysts in alveoli of pet squirrels maybe of public health concern if tissue cysts excreted in nasal secretions are swallowed by children.