The prothoracic gland of honey bee larvae was identified, and its developmental characteristics were assessed by a combination of histological and physiological methods. The reticulate gland is attached to the intestinal tract at the junction of the esophagus and midgut. Ultrastructurally prothoracic gland cells show the typical characteristics of ecdysteroid-producing cells, i.e., a deep plasma membrane reticular system and extensive smooth as well as rough endoplasmic reticulum. Small lipid vacuoles bounded by flattened SER sacs were found in considerable numbers shortly before commencement of ecdysteroid synthesis. An element apparently unique to prothoracic gland cells of honey bees are tracheoles, which penetrate deeply into the gland. Ecdysteroid production of isolated glands was monitored in vitro by RIA analysis of released products. Developmental profiles for hormone production in prothoracic glands of queen and worker larvae showed a high correlation to caste-specific differences in hemolymph ecdysteroid titer. Control tissue did not liberate significant amounts of RIA-active material during decisive developmental phases.