The nonergot alkaloid-producing endo-phyte, AR542, has been shown to improve the persistence and yield of tall fescue pastures without causing the animal disorders commonly associated with tall fescue toxicosis. A 3-yr grazing study was conducted to compare effects of AR542-infected tall fescue pastures with wild type endophyte-infected (E+) tall fescue pastures on cow-calf performance. Replicated 7.3-ha pastures of each treatment were grazed by cow-calf pairs (16 pairs per pasture replication) each year from March to weaning in September. The cows were exposed to breeding on their respective pasture treatments from April 1 through June 15. The treatment groups were compared for reproductive performance, ADG, BCS, calf growth rate, and weaning weight. Blood samples were also collected for serum prolactin (PRL) analysis. There were no significant differences in calving rate (P = 0.98) or calving interval (P = 0.62) between pasture treatments. Cows that grazed the AR542 pastures subsequently gave birth to calves that were heavier (P < 0.05) than calves from cows that had grazed the E+ pastures. Cows grazing the AR542 pastures had higher (P < 0.05) BCS at the end of the grazing period, and had higher ADG during the grazing period. Calves raised on the AR542 pasture had higher (P < 0.05) ADG and weaning weights than calves of the same sex raised on the E+ pastures. Serum PRL concentrations were decreased (P < 0.05) in both cows and calves on the E+ pastures compared with serum PRL concentrations in cows and calves grazing the AR542 pastures. The results indicate that grazing tall fescue pastures infected with the AR542 endophyte may give significant advantages in cow-calf growth rates and BCS over grazing E+ pastures. However, there did not seem to be any benefit in reproductive performance in this trial. There was a small, but significant increase in birth weight in cows grazing AR542 pasture.