Parafollicular cells (PC) of the sheep thyroid gland are neural crest derivatives that synthesize and release the biogenic amine serotonin (5-HT) as well as the hormone calcitonin . The thyroid also contains a highly specific serotonin-binding protein (SBP) . Separation of dissociated thyroid cells was done to study the cellular localization of SBP and to develop a means of isolating PC for study. Various methods were used to obtain an enriched and purified population of PC . Minced thyroid glands were enzymatically dissociated and the cells were layered on a Ficoll linear density gradient . Fractions obtained from the gradient were examined for cell number, viability, 5-HT concentration, SBP activity, and morphology by electron microscopy . One of the fractions was found to be enriched in PC . High levels of 5-HT and SBP were also found in this fraction, whereas these levels were low where the majority of cells were found . This PC-rich fraction, however, contained numerous follicular cells (FC) ; therefore, additional approaches to cell separation were used . FC can be stimulated in vitro with thyroidstimulating hormone (TSH) to become intensely phagocytic . When stimulated cells were incubated in the presence of silica microspheres, the FC engulfed the microspheres, which were toxic to them . PC did not become phagocytic and were unharmed by the microspheres . Suspended cells, after incubation with microspheres, were centrifuged on a discontinuous gradient, and a PC-rich fraction was obtained . Silica, however, interfered with analysis of SBP. Another method to take advantage of the phagocytic potential of FC was therefore used . TSHstimulated cell suspensions were passed through a column of Sepharose to which thyroglobulin had been coupled . Stimulated FC apparently adhered to the beads and were retained by the columns. Fractions eluting from the columns were greatly enriched with PC . These fractions contained high levels of 5-HT and SBP, and considerably reduced FC contamination was found by quantitative electron microscopy . It is concluded that SBP is localized to PC in the sheep thyroid . The idea that these cells resemble serotonergic neurons in their mechanisms of 5-HT storage is supported .The thyroid glands of all mammalian species that have been examined have been found to contain the biogenic amine, serotonin (5-HT ; 25) . The concentration of 5-HT in these glands is particularly high in the rat, sheep, horse, goat, bat, and callithricid primate (8,20, 22,25,31); however, the site of 5-HT storage differs among these species . In the rat, 5-HT is found in mast cells (21). In the sheep, horse, goat, bat, and THE JOURNAL Of CELL BIOLOGY " VOLUME 88 MARCH 1981 499-508 ©The Rockefeller University Press " 0021-9525/81/03/0499/10 $1 .00 callithricid primate, 5-HT is not contained in thyroid mast cells but, instead, the amine is concentrated in the parafollicular cells ofthe glands (8, 11) . There is evidence that 5-HT is stored within the same secretory granules that also contain calcitonin (3,1...