Previous studies of AMI-25, a particulate iron oxide magnetic resonance contrast agent, imaged liver tumors 1 or more hours after injection, in the retention phase after complete clearance of AMI-25 from the circulation. In the present study, imaging was performed in the distribution phase, during the first 12 minutes after injection while contrast agent remain in circulation, and these images were compared with those obtained in the retention phase. Nineteen patients with cancer were studied, including 15 imaged during the distribution phase. T2-weighted distribution phase images demonstrated 90% of the lesions detected by means of T2-weighted retention phase images, showed a 3.5-fold increase in contrast-to-noise ratio over images obtained before administration of AMI-25, and increased diagnostic confidence by reducing signal from small intrahepatic blood vessels. Distribution phase images showed little contrast agent uptake by cancer tissue. Both distribution and retention phase images demonstrated greater contrast agent uptake by hemangiomas than by malignant neoplasms (P less than .01). The use of both distribution phase and retention phase AMI-25-enhanced images offers improved diagnostic accuracy in the detection and characterization of focal liver lesions.