Evidence for the formation of singlet oxygen during the oxidation of NADPH by liver microsomes is presented. The evidence is based primarily on the enzyme-dependent formation of dibenzoylethylene from diphenylfuran, a reaction which is specific for singlet oxygen. The apparent formation of singlet oxygen is coupled to the occurrence of peroxidation of microsomal lipid, a phenomenon known to be associated with NADPH oxidation by the particles. Both the peroxidation of lipid and the apparent formation of singlet oxygen are related to the amount of Fe3+ present in the system and the results are consistent with the possibility that the singlet oxygen formed by this system is derived from the breakdown of lipid peroxides. If 1O2 is formed from breakdown of lipid peroxides, it would be dependent on O-/-2 formation because superoxide anion has been shown to undergo reactions in this system which generate extremely reactive free radicals (probably hydroxyl) that initiate lipid peroxidation. These peroxides are quite unstable and their degradation may be the source of 1O2. We have consistently observed that O-/-2 itself is not a reactive radical with respect to lipids or radical scavengers. Hence, O-/-2 cannot be the radical which initiates lipid peroxidation on which 1O2 generation appears to depend. The results may offer at least part of the explanation for the dietary requirement for alpha-tocopherol which not only scavenges free radicals but quenches singlet oxygen as well. This report also includes description of studies indicating that another enzyme, xanthine oxidase, which forms superoxide anion during its activity under aerobic conditions, does not form singlet oxygen during its function. This finding is in contrast to reports of others which indicate that xanthine oxidase activity does produce 1O2.