- The production of neutral kaons in e+e− annihilation at centre-of-mass energies in the region of the Z0 mass and their Bose-Einstein correlations are investigated with the OPAL detector at LEP. A total of about 1.26×106 Z0 hadronic decay events are used in the analysis. The production rate of K0 mesons is found to be 1.99±0.01±0.04 per hadronic event, where the first error is statistical and the second systematic. Both the rate and the differential cross section for K0 production are compared to the predictions of Monte Carlo generators. This comparison indicates that the fragmentation is too soft in bothJetset andHerwig. Bose-Einstein correlations in K s 0 K s 0 pairs are measured through the quantityQ, the four momentum difference of the pair. A threshold enhancement is observed in K s 0 K s 0 pairs originating from a mixed sample of\(K^0 \bar K^0\) and K0K0 (\(\bar K^0 \bar K^0\)) pairs. For the strength of the effect and for the radius of the emitting source we find values of λ=1.14±0.23±0.32 andR0=(0.76±0.10±0.11) fm respectively. The first error is statistical and the second systematic.