We studied the inoculum size effect in Ceratocystis ulmi, the dimorphic fungus that causes Dutch elm disease. In a defined glucose-proline-salts medium, cells develop as budding yeasts when inoculated at >10 6 spores per ml and as mycelia when inoculated at <10 6 spores per ml. The inoculum size effect was not influenced by inoculum spore type, age of the spores, temperature, pH, oxygen availability, trace metals, sulfur source, phosphorous source, or the concentration of glucose or proline. Similarly, it was not influenced by added adenosine, reducing agents, methyl donors, amino sugars, fatty acids, or carbon dioxide. Instead, growing cells excreted an unknown quorum-sensing factor that caused a morphological shift from mycelia to budding yeasts. This yeast-promoting effect is abolished if it is extracted with an organic solvent such as ethyl acetate. The quorum-sensing activity acquired by the organic solvent could be added back to fresh medium in a dosedependent fashion. The quorum-sensing activity in C. ulmi spent medium was specific for C. ulmi and had no effect on the dimorphic fungus Candida albicans or the photomorphogenic fungus Penicillium isariaeforme. In addition, farnesol, the quorum-sensing molecule produced by C. albicans, did not inhibit mycelial development of C. ulmi when present at concentrations of up to 100 M. We conclude that the inoculum size effect is a manifestation of a quorum-sensing system that is mediated by an excreted extracellular molecule, and we suggest that quorum sensing is a general phenomenon in dimorphic fungi.Fungal dimorphism is defined (20) as an environmentally controlled reversible interconversion of the yeast and mycelial morphologies. Interest in this phenomenon derives from the prevalence of dimorphism among those fungi exhibiting pathogenicity towards plants and animals. Numerous chemical and environmental parameters have been reported to shift the yeast-mycelium dimorphism. Among these have been temperature (18), pH (18), glucose levels (2, 3, 5, 18), nitrogen source (12, 22), carbon dioxide levels (2), and transition metals and chelating agents (3,8,17,18), as well as the inoculum size or cell density employed (3,12,19,24).We have been studying quorum sensing in the regulation of yeast-mycelium dimorphism in fungi. In Candida albicans, we recently showed (9) that the inoculum size effect results from production of farnesol. Farnesol is continuously excreted by C. albicans during growth in amounts roughly proportional to the number of CFU per milliliter. At a sufficiently high level (1 to 5 M), farnesol prevents mycelial development during growth. It also blocks germ tube formation caused by three chemically distinct triggers: L-proline, N-acetylglucosamine, and serum. In all cases, the presence of farnesol at concentrations of up to 250 M prevents the yeast-to-mycelium conversion, resulting in actively budding yeasts without influencing cellular growth (9). Farnesol exhibits general cross-reactivity within C. albicans in that supernatants from strain A72 are act...