Crude mitochondrial preparations from Neurospora crassa contain high levels of lysophospholipase (EC 3.1.1.5) activity when assayed with lysophosphatidylcholine as a substrate. In mitochondria purified by centrifugation on a sucrose-density gradient this activity is virtually absent. The enzyme was shown to be linked to a contaminating cell fraction which mainly consists of cell-wall material as was demonstrated by electron microscopy and chemical analysis. The enzyme has no absolute Ca2+ requirement but it is slightly stimulated by 10 mM CaCl2. The pH optimum is 5.8 in presence of CaCl2 and is shifted to 4.2 when EDTA is present. In contrast to other lysophospholipases this enzyme is only slightly inhibited by deoxycholate. This detergent is able to release part of the lysophospholipase activity from the wall fragments without producing an increase in specific activity. The enzyme is possibly secreted by the cells as high lysophospholipase activities were also found in the culture medium.