Intraspinal injections of lysolecithin were used to produce unilateral demyelination in the dorsal columns of the rat spinal cord. The purpose of this study was to evaluate the effects of demyelination on the conductive properties of axons belonging to a spinal pathway of known origin and site of termination. At 5 and 50 day intervals following injections, animals were prepared for acute experiments during which recordings of tibial nerve evoked potentials were made from the surface of the lumbar spinal cord (L5-L6) and nucleus gracilis (0.5-1.0 mm caudal to obex). Latency, duration, and strength of potentials were evaluated in control (uninjected) and lysolecithin-injected animals. The analysis of these potentials showed increases in latency and decreases in duration and strength of responses recorded 5 days after lysolecithin injections. Animals examined 50 days postinjection showed a decreased latency and increased duration and strength of responses compared to those recorded 5 days postinjection. Ultrastructural examination of lysolecithin injection sites showed these improvements to parallel the remyelination of axons by oligodendrocytes and Schwann cells. The improvement in physiologic characteristics of evoked potentials coupled with the remyelination of dorsal column axons supports the conclusion that remyelination of chemically demyelinated axons is an important factor in reestablishing the functional connectivity of demyelinated axons.