Keratin, prepared from horn meal, was added to moist field and garden soil and allowed to decompose in the laboratory. The keratin was found to undergo a decomposition resulting in a slow, but steady accumulation of ammonia and nitrate. 35–40 per cent, of its nitrogen was transformed into nitrate after 120 days. The addition of keratin produced little or no increase in the number of bacterial colonies on agar platings, but markedly increased the number of actinomycete colonies, especially in garden soil. Two strains of actinomycetes were isolated and found capable of thriving on keratin in pure culture, decomposing the keratin with the formation of ammonia. One of the strains could be recognised as Actinomyces citreus Krainsky, as described by Waksman. The other strain could not be named, but corresponded closely to the description of Waksman's Actinomyces 145.