Sediments and settling particulate matter (SPM) were sampled in a polychlorinated biphenyl (PCB)-contaminated lake, Lake Jarnsjon, and in lakes located up-/and downstream from Lake Jarnsjon. The 7-ethoxyresorufin O-deethylase (EROD)-inducing potencies of lipophilic extracts from sediment and SPM were investigated in organ cultures of chicken embryo livers (denoted in vitro chicken embryo liver bioassay). The extract from sediments collected in Lake Jarnsjon had the greatest EROD-inducing potency of the extracts studied, and it also contained the highest concentrations of PCBs, polycyclic aromatic hydrocarbons (PAHs), and polychlorinated dibenzodioxins/furans (PCDDs/Fs). The non-ortho-chlorinated PCBs in the extracts were probably major contributors to the EROD induction noted. The EROD-inducing potency of sediment extract from the lake downstream Lake Jarnsjon was higher than that of extract from the upstream lake. This indicates that EROD-inducing substances were transported from Lake Jarnsjon sediment to the lake downstream. The extracts from Lake Jarnsjon sediment and SPM were separated into three fractions containing aliphatic/monoaromatic, diaromatic, and polyaromatic compounds, respectively, which were tested in the in vitro chicken embryo Liver bioassay. In all extracts, the aliphatic/monoaromatic fractions were low in EROD-inducing potency, while the polyaromatic fractions from SPM were more potent than their corresponding diaromatic fractions, indicating that they contained high concentrations of aromatic hydrocarbon (Ah) receptor ligands. Only a small part of the EROD induction caused by the polyaromatic fractions could be attributed to the 15 analyzed PAHs in the samples. The EROD-inducing potencies of the diaromatic fractions correlated quite well with their concentrations of PCDDs/Fs and PCBs. The in vitro chicken embryo liver bioassay detected low concentrations of EROD inducers in the extracts and therefore proved useful for estimating the contents of Ah receptor ligands in environmental samples.