Danazol is being increasingly used for the treatment of a wide range of disorders, many of which appear to bear little relation to the condition for which the drug was originally marketed--endometriosis. It has been claimed that this drug acts by means of its antigonadotrophic effects on the pituitary; however, a review of the literature reveals that its efficacy in suppressing normal endometrial growth and in causing atrophy of deposits of endometrium cannot be explained solely on this basis. Recent information indicates that, besides acting at the pituitary level, a major mechanism of action may be by a direct inhibitory effect on target tissue. It is sugggested that such a mechanism would more readily account for the diverse effects of this drug in the treatment of many disorders, all of which appear to be associated with an imbalanced sensitivity of target organs to steroid hormones. A greater understanding of its mechanism of action could lead to an even wider application of this novel drug.