A functional folate deficiency was determined in four offive patients with untreated pernicious anaemia by a new method (Ellegaard & Esmann, 197z.a) for determination of intracellular folate activity utilizing the folate-dependent incorporation of 14C-formate into serine of lymphocytes under standardized conditions.The decreased folate activity of lymphocytes was improved within 3 days of treatment with vitamin B12. These observations support the theory of an intracellular, functionally inert pool of 5-methyl-tetrahydrofolate in vitamin B, deficiency due to impaired methionine synthesis.