The yeast-mycelium transition of Ceratocystis (= Ophiostoma) ulmi (NRRL 6404) was induced by exogenously-supplied nucleosides and nucleotides in defined liquid media. During the yeast-mycelium transition, intracellular adenosine 3':5'-cyclic monophosphate (cAMP) levels increased and maximum levels coincided with maximum germination. This, coupled with findings that the cAMP phosphodiesterase inhibitors, theophylline and caffeine, also induced germination and elevated levels of intracellular cAMP, indicated the involvement of cAMP in the regulation of the yeast-mycelium transition.