Fetal hypothalamic transplants which include the suprachiasmatic nuclei (SCN), were shown previously to be capable of restoring circadian rhythmicity as manifested by both diurnal and free-running rhythms in drinking behavior in rats rendered arrhythmic by SCN lesions. The question arises as to whether the transplant must be homologous tissue or whether any other fetal brain tissue can produce similar effects. In this study rats with a lesion of the SCN and with clear loss of drinking rhythms received grafts of fetal occipital cortex placed into the third ventricle. Following the graft, animals were placed in LD conditions for 8 weeks and then in DD for another 8 weeks. The results indicate that the cortical graft induced recovery of a drinking rhythm under LD lighting conditions but that under DD the rhythm was lost again. These results suggest that non-hypothalamic tissue can mediate recovery of a diurnal rhythm but that hypothalamic tissue including the SCN is required to restore circadian function with maintenance of free-running rhythms.