Granular inclusions are found in testes from a cn bw stock of Drosophila melanogaster, and maternally derived lines, such as SD. In late larval and early pupal stages, these granules show a polarized distribution within primary spermatocytes corresponding to the polarity basic to the type of meiotic drive where certain homologues reach that pole of the spermatocyte leading to functional sperm. In adult males, the granules are found in intercellular patches in the testes. Electron microscopy shows the spermatocyte granules to be spheroids of about 0.7 μ; dividing, or double forms resulting from division, are about 1.8 μ long. They contain numbers of ribosome-like particles and fine strands presumed to be DNA. The acridine orange test for nucleic acids was positive. Each granule is surrounded by two layers of unit membrane and a third such membrane envelopes the individual or the pair of granules, as the case may be. The third membrane layer (and additional membranes sometimes seen) is thought to be due to entrance of the granules into the host cell through the cisternae of the endoplasmic reticulum. Transmission of the granules is strictly maternal and independent of chromosome constitution. Transmission by contagion was not found. Spermatocyte granules are not requisite to the effectiveness of the SD meiotic drive system, which regularly carries them. A slightly lowered fertility of females carrying the granules was found but no similar effect is produced in males. The evidence suggests that they are parasitic organisms, probably Rickettsiae.