A peptide-glucan fraction from Armillaria mellea (Basidiomycetes) was isolated and some aspects of its chemical structure were determined. The glucan is linked to the peptide portion which represents 30% w/w of the complex. Treatment with alkali destroys most of the threonine and leads to the separation of the peptide and carbohydrate moieties indicating the involvement of the hydroxyl group of threonine in the peptide-glucan linkage. The results of partial hydrolysis, methylation studies and Smith degradation involving periodate oxidation, borohydride reduction and acid hydrolysis indicate that the polysaccharide moiety consists of beta(1 leads to 3) and beta(1 leads to 6)-linked D-glucose residues. This peptide-rich glucan fraction showed a significant antitumor activity.