In a series of 39 cases of cutaneous sporotrichosis, 37 were of the localized cutaneous type and only 2 of the lymphangitic variety. Fungi were identified histologically in every case, most often as asteroid bodies which were found in all but 3 lesions. Cultures were occasionally negative even though asteroids or yeast-like forms were present in tissue sections. A histological diagnosis should be possible in all cases if a sufficient number of serial sections are examined by H & E and the PAS method.