This report summarizes the third year of the CIMMYT program in Algeria. Emphasis was continued in breeding and production research of cereals, and a program was initiated involving research on various phases of introducing annual Medicago to replace some of the fallow presently in cereal production. Em.phasis continues on training of young Algerian scientists both locally and in Mexico, Australia and Lebanon, Short travel grants have been given several Algerian agricultural officials for visits to CIMMYT center in Mexico City and to observe Medicago production in Australia.