The histochemical changes in udder were studied in 4 lactating goats. The right udder halves were inoculated through the leat canal with 2 mi of Cryptococcus neoformans culture containing 1 x 10(6) yeast cells/ml, and left udder halves were kept as control. All infected goats developed acute mastitis in their right infected udder halves, which subsequently became chronic, characterised by marked decrease in the size and secretions of infected udder halves till the end of the experiment i.e. 30th day post-inoculation (DPI). Histopathological examination revealed severe, chronic granulomatous mastitis with extensive fibrosis only in the infected udder halves. The histochemical studies showed an increase in the levels of lipids, alkaline phosphatase and acid phosphatase but a marked loss in the levels of adenosine triphosphatase, succinic dehydrogenase and lactate dehydrogenase in the glandular parenchyma of the infected udder halves indicating severe damage to the milk producing cells.