Abstract: In a 2 x 3 factorial experiment we examined the effect of exercise (no exercise/daily exercise) and paddock size (small: 150 m2, medium: 300 m2 and large: 450 m2) on the behaviour of horses. In both these treatment periods nine (three cold blood and six warm blood) adult horses were exposed to all the three paddock size treatments for 2 h daily, for 1 week in each paddock size, and the order of paddock size treatments were rotated systematically. In between turnout in paddocks the horses were all housed in tie stalls. In the non-exercise period the horses walked significantly more, they travelled a longer distance, explored more and stood more alert, than in the period with exercise. The horses stood less passively in the large paddock compared to the medium and the small paddock, and they also travelled a longer distance in the larger paddock sizes. At days with heavy rain and wind, the horses were more restless and walked significantly more than in warmer weather. In conclusion; daily exercise significantly reduced the general activity in the paddocks. Increasing the paddock size to 450 m2, increased the time spent eating grass from under the fence and decreased the time spent standing passively.