We studied the role of hydrogen peroxide release on endotoxin-induced lung injury in unanesthetized sheep with chronic lung lymph fistulas. We also further defined the relationship between endotoxin injury, lipid peroxidation, and prostaglandin production. Sheep were given endotoxin alone (1 microgram/kg) or pretreated with catalase (32,500 U/kg) or ibuprofen (12.5 mg/kg). Endotoxin alone resulted in an early prostanoid release, lipid peroxidation measured as circulating conjugated dienes both one and four hours after the administration of endotoxin, pulmonary hypertension, hypoxia, and increased protein permeability. Permeability was monitored by lymph flow and lymph protein content. Catalase pretreatment significantly attenuated all of these aspects of the endotoxin response. Ibuprofen prevented the early lung changes and blocked prostanoid release but did not attenuate the increased permeability. In addition, cyclo-oxygenase inhibition had a dual effect on lipid peroxidation, increasing initial conjugated diene levels while suppressing the later release. The initial effect was clearly related to cyclo-oxygenase blockade. The early conjugated diene release appears to be related to arachidonic acid metabolism and does not correspond to the degree of increased permeability. We conclude that H2O2 plays a major role in lung injury after endotoxin.