The effect of a nearby gamma-ray burst (GRB) on the preplanetary solar nebu
la is considered. The intense irradiation by x-rays and gamma-rays would ha
ve caused dust balls to become molten in a matter of seconds, cooling more
slowly to form chondrules, The role of iron is crucial in this process beca
use it was the major absorber of x-rays between 7 keV and 30 keV. In this s
cenario, chondrules formed at the same time across the side of the nebula t
oward the GRB source. At least 27 Earth masses (M+) could have been produce
d in the nebula with well mixed gas and dust of solar composition, increasi
ng to 100 M+ with only moderate depletion of nebular gases. The chondrules
combined to form meteorites and possibly the terrestrial planets, the cores
of the giant planets and chondrules in comets. Assuming GRBs are linked to
massive stars like supernovae, the probability of a GRB within 100 pc whic
h could form chondrules is about 10(-3) and the same small probability may
apply to other planetary systems being akin to our solar system. A GRB in a
nearby galaxy will reveal protoplanetary disks by delayed transient infrar
ed emission from the chondrule formation process. We suggest that a GRB was
first detected about 4.5 Gyrs ago and its signature was written in stone a
nd preserved by the chondrules in meteorites.