A method is described which produces an isolated Grade II injury in the medial collateral ligament of the sheep's knee. The untreated injury was followed in 32 animals for up to six weeks. Histology revealed progressive healing of the lesions by a cellular response mediated by fibrocytes rather than by the classically described inflammatory response. Mechanical testing showed that the tensile strength of the ligament was initially reduced to 13% of normal but that strength and compliance were regained after six weeks.