Granuloma of the nose which does not heal is a tripartite disease, including classical malignant granuloma, Wegener's granulomatosis, and a third group with neoplastic characteristics (granuloma gangrenescens). Five cases of this third type are described and 20 others from the literature are tabulated. The primary lesion is in the nasal or palatal region; after a latent period, metastases develop in many organs. The histological features are those of malignancy. Reasons are given for regarding the condition as a sarcoma of the reticulo endothelial system.