Differentiation of gonads in embryonic pigs (ages 24 to 44 days) was studied by light and electron microscopy. Incipient short cord-like structures were seen in embryos of both sexes at the age of 24 days. The cords were ultrastructurally similar. Medullary cords appeared in the testis at 26 days and in the ovary at 28 days. The cords in the ovary degenerated gradually and new cortical cords started to develop at 34 days. The formation of cords in both sexes is difficult to explain with the H-Y antigen theory, according to which the antigen should organize cords only in the male. The present results indicate that new approaches are needed for further development of the H-Y antigen theory.