A mutant which is capable of differentiating into spores and stalk cells without forming a cell aggregate was isolated from the cellular slime mould, Dictyosteliurn discoideum. The mutant stopped developing at various stages, before formation of mature fruits, and the cells differentiated into s p o r a and stalk cells at whichever stage the develop-nent stopped. Unaggregated cells also differentiated into spores or stalk cells, depending on the culture conditions; differentiation into spores predominated in nutrient rich medium, while differentiation into stalk cells predominated in nutrient poor medium. The ratio of spores to stalk cells or of prespores to total cells in cell masses depended on the terminal structures formed; the ratio was unusually high or unusually low in a structure which stopped developing before papilla formation, while the ratio was normal in a structure forimed after that stage. When isolated from a cell mass, prespore cells of the mutant did not dedifferentiate or resumed vegetative growth, indicating that they had lost plasticity of differentiation. The conditioned medium in which the mutant cells had grown was effective in inducing diikzntistion of wild type slug cells into spore-like or 'stalk-like cells.The development of the cellular slime mould Dictyostelium discoideum is initiated by aggregation of individual amebas into a hemispherical cell mass. A papilla develops on the top of the aggregate and then elongates and transforms into a slug shaped cell mass. After a period of migration, the slug constructs a fruiting body consisting of a cellular stalk supporting a mass of spores. During formation of the fruiting body, the anterior prestalk cells of the slug differentiate into stalk cells, while the posterior prespore cells differentiate into spores (14). The prespore cells are identified by the presence of a prespore antigen which is specifically stained with fluorescein conjugated antispore serum (17, 19).Free-living cells which have not aggregated do not differentiate into either spores or stalk cells under normal conditions. When cells disaggregated from a slug are replated without being allowed to reaggregate, they are inhibited from accumulating some stage specific enzymes (13). Similarly, isolated prespore cells lose the prespore antigen and dedifferentiate to become capable of vegetative growth (21). Furthermore, when a slug of a "cell contact temperature-sensitive" mutant was exposed to non-permissive conditions, the cells dedifferentiated in spite of the fact that they were still packed in the cell mass (1 1).BONNER ( Cell contact is required for cell differentiation in this organism.The following observations, however, seem inconsistent with these facts.