To investigate the function of activated oncogenes we attempted to create transgenic mice carrying activated human c-Ha-ras genes which have their own promoters. However, we never obtained any transgenic pups which developed to term, because all transgenic embryos were malformed, became developmentally arrested conceptuses or developed embryonic tumors during ontogenesis. The mRNA expression of the transgenes was detected in two tumors obtained after introduction of the DNA fragment containing the activated human c-Ha-ras gene for p21 with valine at the 12th codon or with leucine at the 61st codon. Histological analysis indicated that each tumor consisted of at least three types of cells: two originating from different germ layers (the endoderm in one case and the mesoderm in the other) and the third from extra embryonic ectoderm. It was suggested that the activated human c-Ha-ras gene has a critical effect on the development of tumors in normal embryos as well as in transformation of NIH3T3 cells.