WHILE examining the histology of tuberculoid and lepromatous skin lesions of leprosy, we noted that there were many cells containing acid-fast granules in the cytoplasm, around the granulomatous collections, in the connective tissue and in relation to small capillaries in both types of the disease. These granules were spherical, and stained somewhat paler red than the acid-fast Myco. leprae with the Fite-Faraco modification of Ziehl-Neelsen stain using Harris's haematoxylin as counter-stain. These cells were rounded, oval, stellate or spindle-shaped with oval, rounded or bean-shaped nucleus. The cell membrane was indistinct, and in some cells the granules appeared extracellular.