The distribution and ultrastructure of Merkel cells in the hard palate was investigated in the squirrel monkey (Saimiri sciureus) after fixation by vascular perfusion. Merkel cells were clustered at the base of the epithelial rete pegs of the hard palate. They were characterized by concentrations of dense-cored granules and closely associated intraepithelial nerve endings. Numerous spiny processes extending from the Merkel cell were intercalated with adjacent keratinocytes, probably serving to detect and amplify movement of adjacent cells. These spiny processes contained a rigid core of parallel microfilaments which were interrelated with cytoplasmic filament bundles located beneath the cell membrane. Transitional cells containing dense-cored granules and well developed tonofibrils appear to be related to both Merkel cells and keratinocytes. The findings of this study suggest that Merkel cells are highly adapted for detection of movement in adjacent keratinocytes, as well as movement of the epithelium with respect to the underlying connective tissue.