In 1984, Gromov (see [4] and [6]) introduced the idea of subdividing a
'branching' polyhedron into smaller cells and replacing these cells b
y more complex objects, reminiscent of the growth of multicellular org
anisms in biology. The simplest situation of this kind is a graph subs
titution which replaces certain subgraphs in a graph G by bigger finit
e graphs. The most basic graph substitution is a vertex replacement ru
le which replaces certain vertices of G with finite graphs. This paper
develops a framework for studying vertex replacements and discusses t
he asymptotic behavior of iterated vertex replacements, the limit obje
cts, and the induced dynamics on the space of infinite graphs from the
viewpoint of geometry and dynamical systems.