Sera from 75 water buffaloes from Egypt were examined using a direct agglutination test incorporating mercapto-ethanol for antibodies to Neospora caninum and Toxoplasma gondii. Antibodies to N. caninum were found in 51 (68%) of 75 buffaloes in titres of 1:20 (six buffaloes), 1:40 (15 buffaloes), 1:160 (one buffalo), 1:320 (one buffalo) and =< 1:640 (28 buffaloes), using N. caninum formalin-preserved whole tachyzoites as antigen. Antibodies to T. gondii were not found in a 1:100 dilution of serum of any of the 75 buffaloes, using T. gondii as antigen, indicating specificity in the detection of antibodies to N. caninum. This is the first report of N. caninum prevalence in water buffaloes, which are economically very important domestic animals in developing countries.