Sexual differentiation of the Müllerian duct system and gonad in female fetuses conformed to the general mammalian pattern, whereas the external genital anlage in male and female fetuses developed into the male facies. Interstitial cells occurred in the primary germinal cords of both male and female fetal gonads and are suggested to be the source of androgen production in spotted hyaena fetuses. Maternal transfer of androgens to the fetus via the placenta was negligible. Male fetuses had higher gonadal and plasma concentrations of testosterone than female fetuses, and vice versa for androstenedione. Plasma testosterone was nearly as high in a female 31-day-old fetus as in the twin male, and masculinization of the genital tubercle probably results from an episode of androgen secretion by the fetal gonad although the Wolffian ducts in the female do not respond.