The pontine brain stem hypothesis of desynchronized sleep generation has been tested with cellular methods confirming its three principal tenets: Ascending activation is apparent in the increased discharge of almost every forebrain neuronal population that has been studied. The precise synaptic mechanisms mediating this net excitation have not been elucidated but tonic postsynaptic facilitation is likely to underlie EEG desynchronization while presynaptic inhibition and phasic postsynaptic facilitation are probably involved in PGO wave generation. Descending inhibition of spinal reflex activity has been documented and analyzed in detail. Indirect, but strong evidence favors the operation of tonic postsynaptic inhibition, phasic postsynaptic excitation and presynaptic inhibition in the genesis of atonia, muscle twitches, and phasic sensory changes respectively. Pontine control of some of these events has been strengthened by the satisfaction of criteria for executive neurones by the giant cells of the pontine reticular formation (FTG). These neurones may be directly responsible for phasic events including the REMs, muscle twitches, and PGO waves. They may be indirectly responsible for EEG desynchronization through recruitment of more rostral reticular elements. They are probably not responsible for the atonia which is more likely mediated by their more caudal medullary reticular congeners. The mechanism of periodic activation of the executive neurones in the FTG may be that of reciprocal interaction with other pontine level-setting elements for which the best candidates are those neurones in the locus coeruleus and dorsal raphé nucleus having activity curves reciprocal to those of the FTG. A precise neurophysiological and mathematical model of reciprocal interaction is described. The reciprocal interaction hypothesis of desynchronized sleep control finds independent confirmation in a vast array of pharmacological data on sleep. In particular, the following tenets of the hypothesis are supported: The executive elements of the pontine brain stem control system include the giant cells of the reticular formation (FTG). These cells are cholinoceptive and cholinergic. They excite postsynaptic follower elements including each other. When cholinergically activated, the FTG neurones cholinergically generated desynchronized sleep events including EEG desynchronization, eye movements, PGO and other phasic events. Drugs which enchance cholinergic synaptic transmission, especially when injected into the giant cell fields, enchance descynchronized sleep. By contrast, anticholinergic compounds suppress desynchronized sleep. Cholinergic agents may also show suppress desynchronized sleep when injected into the presumed level setting neuronal pools of the dorsal raphé nucleus (DRN) and locus coeruleus (LC). The level-setting elements for the FTG include cells in the DRN and LC. These cells may be aminergic and aminoceptive, inhibiting their postsynaptic followers including each other. When activated, they suppress desynchronized sleep events especially atonia and PGO activity. Drugs which enchance aminergic synaptic transmission tend to suppress desynchronized sleep. Antiaminergic agents tend to enhance desynchronized sleep. Aminergic drugs should suppress desynchronized sleep when injected into the pool of generator neurones in the FTG. The reciprocal interaction hypothesis thus orders an otherwise confusing pharmacological literature and gives rise to new and testable hypotheses of sleep-cycle regulation. The combination of chronic microelectrode recording and microinjection techniques may thus result in a precise cellular neuropharmacology of those reticular systems long thought to regulate sleep and other vegetative phenomena.