The mechanism of transduction by bacteriophage in Salmonella typhimurium was studied by subjecting the cells to gamma radiation at critical points in the formation of transducing phage. It was concluded that the frequency of transduction for any one locus in synchronized cells is determined by the stage reached in sequential replication of the cell DNA strand at the moment when replicating phage DNA becomes available. Phage DNA replication proceeds at a more rapid rate than cell DNA, and it may incorporate a fragment of the cell DNA at the point where replication is occurring. The data indicate that the order of transduction in synchronized division is the linear order of the loci in the DNA strand. Strain differences were observed in both phage and cell. (C.H.)