Three 14 day trials were used to compare granulated paper(GP) to pine pellets(PP) and wood shavings(WS) as bedding for horses. During days 1 through 5 stalls were cleaned daily of feces only, and stalls were cleaned of both feces and saturated areas from days 6 to 14. For stall cleanliness, PP was cleaner than both GP and WS. Initial pH was greater for both GP and WS compared to PP. The water holding capacity for WS was greater than PP and GP. On day 5 there was ammonia detected for WS during trial 1. GP and WS emitted more ammonia than PP when air flow was restricted. Bacteria found in the nasal cavity were not different among bedding types. GP had more fungal growth. Minerals were found within the maximum tolerance of horses. Results indicate the use of GP as a bedding material for horses has potential.