Previous investigations have reported a correlation between outer segment disk phagocytosis by the retinal pigment epithelium (RPE), and the formation of myeloid bodies, which are lamellar specializations of the smooth endoplasmic reticulum of the RPE. To further test the hypotheses that MBs are directly related to the process of outer segment shedding, we have undertaken to study the development of the retinal pigment epithelium in the chick utilizing a morphometric ultrastructural approach with specific attention to the timing of outer segment disk shedding and the formation of myeloid bodies.This study has demonstrated a temporal relationship between the initiation of photoreceptor outer segment disk shedding in the chick embryo and the occurrence of myeloid bodies. We have shown that photoreceptor outer segment disk shedding and phagocytosis by the RPE has been initiated in a substantial proportion of the retina by day 18 of development. Myeloid body formation does not begin until two days later at embryonic day 20, and is preceded by the development within the RPE of flattened areas of the normally tubular SER (templates), which we believe represent the precursors of myeloid body formation. Temporal development of outer segment phagocytosis, lamellar SER (template) occurrence and myeloid body formation are all statistically significant at the 95% level.