The (nth,&ggr;) reaction has been measured at the ILL on the target nuclei163Dy and164Dy using the Ge pair spectrometer PN4 and the bent crystal spectrometers GAMS. Conversion electrons have been measured using the &bgr;‐spectrometer BILL, and coincident &ggr;‐rays were recorded at the end position of the neutron guide H22. Measurements in different neutron fluxes and the observation of the time dependence of the neutron capture process allowed to assign transitions in166Dy unambiguously. The multipolarities obtained from the measurement of conversion electrons were used to improve spin and parity assignments for levels in164–166Dy.