Fine-grained, heavily-hydrated lithic clasts in the metal-rich (CB) chondrites Queen Alexandra Range (QUE) 94411 and Hammadah al Hamra 237 and CH chondrites, such as Patuxent Range (PAT) 91546 and Allan Hills (ALH) 85085, are mineralogically similar suggesting genetic relationship between these meteorites. These clasts contain no anhydrous silicates and consist of framboidal and platelet magnetite, prismatic sulfides (pentlandite and pyrrhotite), and Fe-Mn-Mg-bearing Ca-carbonates set in a phyllosilicate-rich matrix. Two types of phyllosilicates were identified: serpentine, with basal spacing of similar to0.73 nm, and saponite, with basal spacings of about 1.1-1.2 nm. Chondrules and FeNi-metal grains in CB and CH chondrites are believed to have formed at high temperature (>1300 K) by condensation in a solar nebula region that experienced complete vaporization. The absence of aqueous alteration of chondrules and metal grains in CB and CH chondrites indicates that the clasts experienced hydration in an asteroidal setting prior to incorporation into the CH and CB parent bodies. The hydrated clasts were either incorporated during regolith gardening or accreted together with chondrules and FeNi-metal gains after these high-temperature components had been transported from their hot formation region to a much colder region of the solar nebula.