The life cycle of a nonfilamentous marine phycomycete, Dermocystidium sp., is described from its growth in axenic culture under controlled conditions. Reproduction occurs by vegetative means involving a process of cell enlargement and ecdysis modifiable by the methods of cultivation. Zoospores and sexuality were not observed. The results of inoculation studies with algae, phanerogam debris, and molluscs suggest that the fungus may be a free-living saprophyte in coastal waters.