Subcutaneous hormone implants are a useful method for managing overabundant marsupials in restricted enclosures in Australia. Levonorgestrel induces long-term infertility in the kangaroo, tammar wallaby and koala, although the contraceptive mechanism of levonorgestrel is unknown for any marsupial. In the present study, it was investigated if insertion of a single levonorgestrel or control implant at the time of reactivation of the diapausing blastocyst affected the subsequent post-partum oestrus or the preceding follicular development. Twenty levonorgestrel-treated and 16 control animals were autopsied the day before birth and the accompanying post-partum oestrus (Day 25), and 10 levonorgestrel-treated and five of the nine control animals were autopsied 3-4 days (Days 29-30) after the expected birth and oestrus. Peripartum behaviour was observed and birth and mating times were recorded. Levonorgestrel treatment did not prevent follicular growth because there was no significant difference between treatment and control animals in the size of the dominant follicle at Day 25. None of the levonorgestrel-treated females autopsied at Days 29-30 had ovulated (n= 10), in contrast to controls, where four of the five that were autopsied had ovulated. Mating occurred in eight of nine control animals but in only three of 10 levonorgestrel-treated females. Males showed a more sustained period of interest in the three that were mated than in the controls, and mating took place significantly later after birth (36 v. 10 h; P = 0.038). Follicular growth and development was not blocked in any female but only one-third of the animals mated and none ovulated after levonorgestrel treatment. These results suggest that levonorgestrel inhibits the preovulatory surge of luteinising hormone.