Extracellular recordings were obtained from a class of nonpyramidal neurones in hippocampal slices. Oxytocin applied to the bath at concentrations of 1 nM or greater excited these cells. This effect was reversibly antagonized by a synthetic structural analogue known to block the peripheral endocrine effects of oxytocin. The effect of oxytocin was mimicked by a selective oxytocic agonist and, with less potency, by vasopressin and by other structural analogues. The potencies of oxytocin, vasopressin, and of these analogues in the hippocampus correlated well with their uterotonic activities but not with their vasopressor or antidiuretic activities. The data suggest that a class of hippocampal neurones is endowed with receptors for oxytocin that are similar to those of uterine smooth muscle cells.