Extracellular field potentials were recorded from the rabbit olfactory bulb following stimulation of the surface and the lateral olfactory tract. Experiments were also performed on olfactory nerve rootlets and a conduction velocity of .34 m/sec and an absolute refractory period of 2.7 msec were obtained. Stimulation of the surface of the bulb produced in a nearby surface recording electrode an initial sharp triphasic potential followed by two slow negative waves and a later positive wave. It was concluded that the initial triphasic potential represents the compound action potential of the olfactory nerves. The first slow negative wave is due to the postsynaptic excitation of the dendrites of secondary neurons by the olfactory nerves. The second negative wave is due to the synaptic depolarization of the granule cell processes by the dendrites of secondary neurons. The later positive wave represents the inhibitory postsynaptic potentials generated in the relay neurons by the granule cell processes.