The failure of denervated muscle to undergo effective regeneration, despite reported increases in the number of muscle satellite cells, warranted an investigation of the viability and myoblastic capacity of these cells present in denervated muscle. Four types of satellite cells present in muscle denervated for three weeks are described, based on their ultrastructure and relationship to their principal fiber. The increased number of ribosomes, including helically arranged polysomes; the number of Golgi complexes; the presence of microtubules; the branching subsarcolemmal tubular system; and the appearance of regularly arranged 96 A microfilaments with diffuse electron dense areas are structural features of satellite cells that are similar to those of developing myoblasts in growing and regenerating muscle. The electron microscopic observations suggest that "activated" satellite cells do have myoblastic potential. Possible explanations for the ultimate failure of denervated muscle to regenerate include: 1) the inability of the muscle to produce satellite cells rapidly enough to keep pace with muscle degeneration; 2) a cytotoxic effect produced by the degenerating muscle fiber on the satellite cell; and 3) the inability of satellite cells to form stable, mature multinucleated fibers in the absence of the trophic effect of the nerve.