In the C4 plant, Amaranthus graecizans, increasing [O2] from 2% up to 100% inhibited photosynthesis, quantum yield, and the carboxylation efficiency, and increased the CO2 compensation point (Γ) from 2 to about 12 μl/l. The O2 inhibition of photosynthesis was fully reversible. When changing from 2.5 to 40% O2 and vice versa, about 1 h was required for full equilibration with an O2 inhibition of 18%; whereas in wheat, a C3 species, inhibition of photosynthesis and its reversal occurs within minutes after changing [O2], resulting in 63% inhibition of photosynthesis by 45% O2. These differences in O2 inhibition between a C4 and C3 species can be explained by high diffusive resistance across bundle-sheath cells of C4 plants and the increased CO2/O2 ratio in bundle-sheath cells which is the consequence of the C4 cycle. In A. graecizans, Γ increased with increasing [O2] but tended to reach a maximum at relatively high O2 levels. The lack of a linear increase in Γ as previously observed for C3 species indicates that a considerable amount of photorespired CO2 may be re-fixed with increasing levels of O2. In comparison to previous reports with other C4 species, photosynthesis of A. graecizans shows greater sensitivity to O2, with a noticeable inhibition occurring with shifts from 2 to 21% O2. A. graecizans has characteristics of other C4 species with respect to Kranz anatomy, localization of PEP carboxylase in mesophyll cells and RuBP carboxylase in bundle-sheath cells, and little fractionation among carbon isotopes during CO2 fixation. The basis for the higher sensitivity of photosynthesis of A. graecizans to O2 may be based upon a lower diffusive resistance of gases across bundle-sheath cells than in some other C4 species.