By the agar-implantation developed by the authors the process of conversion on Blastomyces dermatitidis from mycelial phase to yeast phase was observed. First of all slide cultures of the fungus were prepared at room temperature. Upon confirmation of good hyphal growth, a cover glass was removed and a part of medium was cut out in a square of about 3 mm a side. After mice were laparotomied, each agar block cut out was implanted in the peritoneal cavity of mouse. The mice implanted with the agar blocks were killed, two each, every day for 14 days, and thereafter at intervals of a week for 2 months. Therefore, the implanted agar blocks were all recovered. They were examined directly by a light microscope with histopathological and electron microscopic examinations carried out at the same time. Within the peritoneal cavity of mouse, the intercalary and terminal chlamydospores were formed from hyphae. These subsequently swelled to become yeastlike cells and proliferated thereafter by budding.