There is ample evidence that a relationship exists between duct epithelial hyperplasia and carcinoma of the pancreas. However, no experimental system exists to investigate the mechanisms involved. A new model is described in the Syrian golden hamster for inducing duct epithelial hyperplasia and nesidioblastosis. The head of the pancreas is wrapped with cellophane tape; ligation of the duct is not involved and there is no evidence of diffuse pancreatitis. Preliminary studies have revealed that this model results in periductal fibrosis in relation to the cellophane thus producing partial duct obstruction. Concomitant with the fibrosis there is duct epithelial hyperplasia in the head of the gland, while peripherally there is ductular proliferation and the initiation of nesidioblastosis. It is believed that this model will be of use in studies of pancreatic carcinogenesis and will thus enhance our knowledge of the interrelationships between etiologic factors, precursor lesions, and pancreatic cancer. This is of particular importance in the early recognition of this neoplasm in man.