We describe the first report of caprine arthritis-encephalitis virus (CAEV) isolation in Brazil. In December 1989 a four-year old anglonubian arthritic doe was submitted to euthanasia and its synovial membranes were cultured by explantation. This doe was positive for antibodies to the caprine arthritis-encephalitis virus (CAEV). The reverse transcriptase activity detected in culture supernatants, the characteristic cytopathic effect of lentivirus in these cultures, the detection of viral antigens in concentrated supernatants by the agar gel immunodiffusion test, and the results of the fluorescent antibody test and of Northern blot analyses are consistent with the isolation of the CAEV.