Budding and fine structure were examined in two compatible haploid strains ofTremella mesenterica. Budding is initiated at one pole; successive buds are developed at the initial site and at any subsequently formed sites. The budding process appears to combine features found in apiculate and non-apiculate ascosporogenous yeasts, and inSporobolomycesandRhodotorula. The fine structure observed suggests that new wall material might be deposited within cells as each successive bud is formed. No differences were observed in either structure or budding of the two mating strains examined.