Characteristic ganglion-like cell proliferation observed in the skin of Djungarian hamsters was investigated using 24 male and 24 female hamsters, 1-6 months of age, to examine the anatomic location of these ganglion-like cells and their morphologic features. One abdominal skin tumor composed of these cells and resembling proliferative fasciitis in humans was also examined. Skin ganglion-like cells were rarely observed in young animals but increased in number and extent with age, especially in males. These cells were frequently seen in the ventral and medial regions of the trunk and legs rather than in the dorsal and lateral regions. Light microscopic examination of these ganglion-like cells revealed abundant vesicular basophilic cytoplasm with delicate intracytoplasmic silver stain-positive fibrils. Ultrastructurally, these cells contained abundant rough endoplasmic reticulum and Golgi complexes with dilated cisternae; intracellular collagen fibrils were present within these cisternae. Heat shock protein 47, beta-tubulin, and androgen receptor were expressed in these cells. The morphologic features of cells of one tumor resembling human proliferative fasciitis were identical to those observed in ganglion-like cells. The results of the present study suggest that these ganglion-like cells are derived from intrinsic undifferentiated mesenchymal cells in the dermis or subcutaneous adipose tissue and that any tumor-like lesion they form should be regarded as an abnormal proliferative lesion of skin ganglion-like cells rather than as proliferative fasciitis or fibroma.