Lactones and amines can be reacted together to give hydroxy-containing amides. When these hydroxy-containing amides are combined with a solvent and surfactants, in most cases a gel is formed. However, use of statistically designed experiments to explore mixtures of amines and lactones resulted in finding a thickened oil composition that is uniform, flowable, and dispersible in water, as described in U. S. Patent 6,464,996 [1]. With U. S. Patent 6,464,996 as a starting point, we investigated the use of these thickened oil compositions for the preparation of oil flowable pesticide formulations. The current study, reported here, involved a number of different aspects, including optimization of the lactone/amine combinations, investigation into the role of the surfactants used, and preparation of a pesticide containing oil flowable formulation. Results suggest that oil flowable systems based on hydroxy containing amides are sensitive to component concentrations, but functional systems may be designed based on these amides. Their interesting properties may also find use in other applications.