SCID mice transplanted with human fetal liver and thymus (SCID-hu Thy/Liv) provide a unique in-vivo model to study human T-cell development and clonal selection mechanisms. This SCID-hu mouse model can be adapted to study the role of thymic epithelial cells, or bone marrow-derived cells in transplantation tolerance. In addition, these mice have circulating human T cells, which mediate human allograft rejection in vivo. SCID-hu mice constructed with fetal bones and thymus (SCID-hu BM/Thy) have both circulating human T and B cells, and can be used to study human B-cell development and B-cell functions. In addition, human T-B-cell interactions resulting in human lg production and the modulating effects of cytokines and cytokine receptor antagonists on this process, can be monitored. Collectively, this information indicates that the SCID-hu mouse is a powerful and versatile model to study human immune responses in vivo.