Adrenalectomy does not result in any change in the levels of active or inactive muscle glycogen phosphorylase. However, in adrenalectomized rats administration of epinephrine or cyclic-AMP is not followed by activation of the enzyme. Hydrocortisone replacement therapy results in a return of the activation capabilities of epinephrine and cyclic-AMP. Hydrocortisone treatment also results in an increase in phosphorylase to twice normal levels. We propose that adrenal corticosteroids play a role in the conversion of inactive to active phosphorylase and in the regulation of phosphorylase synthesis. © 1969.