Intratubular cells with numerous refractile eosinophilic cytoplasmic granules were identified in a cryptorchid testis from a 17-year-old boy. The staining properties of the granules and the ultrastructural features were studied. The accumulation of lipid or lysosomal inclusions accounted for the observed cytoplasmic granules. These granular cells were probably altered Sertoli's cells, the exact nature and significance of which need further study.