Over the past few years, pigment cell research has experienced unprecedented impetus in practically all areas. However, as is usually the case in periods of rapid development, several critical issues buried under the glitz of recent success are more or less the same as they have been for many years. Persisting misconceptions and scientific prejudices also contribute to cloud many issues. It appears, for example, that the common perception of melanocyte function is still biased by the traditional concept of a pigment producing cell. In fact, in addition to melanin, epidermal melanocytes are known to produce and excrete a number of melanin-related metabolites, such as DHI and DHICA, which appear to play a critical role in protection of epidermal tissues against toxic oxygen radical species as well as in inflammatory and immune reactions. Another major gap concerns the pheomelanin pigmentary system. This has traditionally been a neglected area of research in spite of compelling evidence for the abnormal susceptibility of red heads to sun damage and skin cancer. An increased attention to the peculiar biological and biochemical features of the pheomelanin forming cells will expectedly open new vistas on the UV susceptibility trait and the etiology of melanoma.