The reduction of geranylgeranylpyrophosphate to phytylpyrophosphate in spinach chloroplasts is described for the first time. The reductase is localized in the chloroplast envelope. By contrast, the reduction of the geranylgeranyl moiety in Chl synthesis is catalyzed in the thylakoids (via Chl synthetase). NADPH functions as electron donor in both reactions. Chl synthetase is firmly bound to the thylakoid membranes, and very little activity is found in the stroma fraction. Chl synthetase in chloroplasts can use the pyrophosphate ester of either phytol, geranylgeraniol, or farnesol, phytylpyrophosphate being the preferred substrate. Exogenous Chlide exhibits no influence on Chl synthesis by chloroplast subfractions.