Thymic epithelial cells were grown in defined medium without unknown serum factors and without concurrent growth of other cell types. Thymic tissue was obtained from 1- to 4-wk-old mice, disaggregated, and incubated in a mixture of collagenase-dispase-DNAse. The resulting organoids were seeded on collagen-coated flasks. The culture medium consisted of DME-F12 with low or high concentration of Ca2+ supplemented with insulin, epidermal growth factor, cholera toxin, hydrocortisone, and transferrin. Under these conditions, explants attached to the substrate within 2 d, and expanding epithelioid monolayer islets emerged from the organoids during the following days. [3H]Thymidine incorporation revealed a growth fraction of the cells close to 5%. By omitting either epidermal growth factor, insulin, or cholera toxin from the medium, pronounced reduction in sizes of islets and in [3H]thymidine incorporation was found. Throughout the culture period, the islets appeared as continuous sheets of polygonal cells. The epithelial nature of the expanding cell islets was confirmed by demonstration of cytokeratins and of desmosomes. Ultrastructural evaluation of early cultures revealed clusters of epithelial cells intermixed with lymphocytes, and late cultures showed a typical pattern of stratified keratinizing epithelium. However, squamous metaplasia was avoided by the use of low Ca2+ medium, which also proved essential for cell transfer. MHC class II antigen was detected on the majority of the cultured cells, and culture supernatants contained co-mitogenic activity for thymocytes and GM-colony stimulating activity.