We have studied the graft rejection of bovine lamellar cornea transplanted onto the rabbit cornea. In addition, the effect of inhibitors of arachidonic acid metabolism and immunosuppressive agents on this heterolamellar corneal transplant was investigated. The corneal lamellar transplant treated with saline were rejected at 9±1.4 day with 100% rejection rate. The postsurgical conjunctival hyperemia and edema occurred within 2–3 days. Corneal neovascularization took 5 to 9 days to reach the region of the graft. Intramuscular cyclosporin A (25mg/kg/day) and dexamethasone (0.1%) applied topically for 20 days (t.i.d.) inhibited the corneal opacity, edema, neovascularization and graft rejection. Topical Dexamethasone in the ipsilateral eye prolonged survival of grafts in the contralateral (untreated) eye. Cyclosporin A and dexamethasone probably inhibited the graft rejection process by their immunosuppressive action. Indomethacin and BW755C, respective cyclooxygenase and lipoxygenase inhibitors, applied topically did not inhibit graft rejection process while inhibiting postsurgical inflammatory response.