1. Spinal ganglia from 8- to 16-day chick embryos were dissociated by trypsinization, and partially or fully dissociated cellular elements were cultured either by Maximow's or by the roller tube technique. 2. The addition of human ascitic fluid or extracts from mouse salivary glands to the nutrient fluid medium is beneficial for obtaining regenerating neurons. 3. Small polygonal cells with many large granules in the cytoplasm often adhere to the neuronal perikaryon or aggregate in small groups with epithelial arrangement. These cells are identified as satellite cells. 4. Completely free neurons isolated from satellite cell are sensitive to light injury and cannot be maintained for a long time. The neurons surrounded only partially by satellite cells survive better, but they degenerate without showing complete differentiation. Maturation of neurons and myelin formation occur in vitro, but only when association with satellite cells is complete. 5. The identification of Schwann cells in chick embryo material is also briefly discussed.