Early hepatocellular carcinoma (HCC) has been defined as a well-differentiated cancer containing Glisson's triad, but it remains unknown whether this lesion is curable. We prospectively studied 70 patients (enrolled from 1,172 referrals between 1982 and 1991) who had a diagnosis of a single HCC 2 cm or less in diameter (Stage T1) and who underwent curative hepatectomy and long-term follow-up (range, 0.2 to 14.3 years). Patients were eligible for surgery if they had a tumor that met the diagnostic criteria for HCC and were in Child-Pugh class A (n ؍ 59) or B (n ؍ 11) status. Among the 70 patients, there was 1 operative death. Based on our typing system, the tumors were assigned as early HCC (n ؍ 15), overt HCC (n ؍ 52), and non-HCC tumor (n ؍ 3). The rate of microscopic regional spread was lower in early HCCs than in overt HCCs (7% vs. 42%; P ؍ .01). The early HCC group had a longer time to recurrence than did the overt HCC group (3.9 vs. 1.7 years; P F .001) and had no local recurrence. After a median follow-up of 6.3 years, both overall survival and recurrence-free survival in the early HCC group were significantly better than those in the overt HCC group (P ؍ .01; P ؍ .001). In these two groups, the 5-year rates of overall survival were 93% and 54% (P ؍ .01), and those of recurrence-free survival were 47% and 16% (P ؍ .05), respectively; a significant survival benefit persisted over a decade (57% vs. 21%; P ؍ .05). The early HCC group was at a lower risk of recurrence (relative risk, 0.31; 95% CI, 0.15 to 0.65; P ؍ .002) and death (relative risk, 0.26; 95% CI, 0.09 to 0.73; P ؍ .01) than was the overt HCC group. Early HCC is a distinct clinical entity with a high rate of surgical cure, thereby justifying its definition. It can be a lesion that corresponds to ''Stage 0'' cancer in other organs. (HEPATOLOGY 1998;28:1241-1246