A Study of the Polarization of Lambda Hyperons in Hadronic Z0 Decays We present a preliminary study of the polarization of Lambda^0 hyperons produced in hadronic jets, along their flight direction and transverse to the plane defined by the initial quark direction and the Lambda momentum. We used a sample of 550,000 hadronic decays of polarized Z0 bosons collected by the SLD experiment at the SLC. The high longitudinal electron beam polarization allowed the determination of the quark (rather than antiquark) direction with high purity. The Lambda^0 -> p pi^- decay mode was reconstructed, and the transverse polarization studied as a function of its momentum and momentum transverse to the thrust axis. An upper limit on such polarization is presented. The predictions of fragmentation models are discussed.