The type II cell of the alveolar epithelium of adult rats has been studied by electron microscopy to determine its ability to endocytose electron-dense tracers of differing molecular charge and size. The tracers studied were native (anionic) ferritin, cationic ferritin, 70-kilodalton dextran, and colloidal carbon. Alveolar macrophages ingested all tracers in large amounts, while type II cells took up significant amounts of cationic ferritin only. This tracer was observed, in sequence, within small pinocytic vesicles, large electron-lucent multivesicular bodies, small electron-dense multivesicular bodies, and, by 30 min after instillation, within the nonlamellar matrix of lamellar bodies. By 2 hr all lamellar bodies in any labeled cell contained cationic ferritin. Cationic ferritin also appeared to be transported from alveoli to interstitium by vesicles of type II, but not type I, cells. Native ferritin and dextran were observed in the same organelles as cationic ferritin but in much smaller amounts; colloidal carbon was not taken up by type II cells. These tracers were not observed in the alveolar interstitium. Type II cells therefore appear to internalize preferentially the tracer that binds to the cell membrane. Once within the cell, the tracer may enter a pathway that terminates in a lamellar body or, in the case of cationic ferritin, may be ferried across the cell.Results of many studies suggest that the ability to ingest materials by endocytosis is a property shared by most, if not all, cells. The general characteristics of the several types of endocytosis have been reviewed recently by several groups (1-3). It has been assumed that this function is also performed by the type II cell of the alveolar epithelium. Occasional early observations suggested that this was indeed the case (4, 5). More recent observations which indicate that type II cells recycle pulmonary surfactant, a material that they synthesize, have prompted renewed interest in endocytic mechanisms in type II cells and in the pathways taken by materials ingested by these cells. On the basis of the observed rates of clearance from alveoli of several surfactant-associated phospholipids, Hallman et al. (6) proposed that recycling of surfactant may take place by means of a process of bulk uptake. If this were true, it might be expected that a vesicle-mediated pathway would link alveoli with lamellar bodies, the intracellular storage granules of surfactant.This study was therefore undertaken to define the fate of various tracer molecules placed in small quantities in alveoli of intact animals in order to determine how the molecular charge and size of the tracers influenced the uptake, if any, by alveolar epithelial cells and, second, to characterize the intracellular pathways taken by the tracers after uptake. Studies of a similar nature have been carried out to determine the fate of several lectins, one of which binds specifically to the apical plasma membrane of type II cells. These results will be reported later.The observations of these ...