Two iron-binding proteins, lactoferrin and transferrin, are present in ruminant milk. Lactoferrin commonly has been assumed to be a product of mammary synthesis, but the origin of milk transferrin has not been elucidated. The objective of this experiment was to study the synthesis and distribution of these two proteins in the mammary gland of sheep. Explants from lactating mammary gland of sheep have been cultured in the presence of [3H]leucine to determine rates of synthesis of lactoferrin and transferrin. After incubation, [3H]lactoferrin was found, but labeled transferrin was not. The capacity of the mammary gland to synthesize lactoferrin decreased markedly in the first 24 h of lactation. Immunohistochemical techniques were utilized to identify the locations of lactoferrin and transferrin in the mammary gland. Transferrin was found in the colostrum contained in the alveolar lumen, in the cytoplasm of the secretory cells, and in the connective tissue between the mammary acini. High concentration of transferrin was found in the basal membrane of the secretory alveolar cells, mainly in those near capillary vessels. Lactoferrin was found in the colostrum and in the cytoplasm of secretory cells with a more homogeneous distribution than transferrin. The connective tissue stained negative for lactoferrin. These results suggest that, although lactoferrin is synthesized by mammary gland of the sheep, transferrin comes from blood serum, probably by a receptor-mediated mechanism of transcytosis.