Multiple lesions of dermal squamous cell carcinoma are found at a low frequency (0.04%) in the carcasses of young meat-type chickens at slaughter. For this study, affected carcasses (n = 308) were removed from the processing line, and lesions were characterized by size, distribution, and morphology. Carcasses were also sexed and examined for evidence of metastasis. Nodular (n = 297) and ulcerative (n = 1,707) lesions were counted and examined. Most lesions were present in the pectoral, dorsopelvic, and femoral feather tracts. Few lesions (n = 11) were found in wing tracts. Mean diameter was 5.4 mm for ulcerative lesions and 3.1 mm for nodular lesions. Histologic sections of ulcerative (n = 579) and nodular (n = 113) lesions were examined. Small nodular lesions originated from hyperplastic feather follicle epithelium. Nodules contained keratin-filled cysts lined by squamous epithelium that were associated with isolated islands and infiltrating cords of dermal keratinocytes. Loss of surface epithelium resulted in noduloulcerative and ulcerative lesions. Invasion of underlying skeletal muscle and evidence of visceral metastasis were not present, but invasion through elastic laminae and into the subcutis was present in 20.5% (134/654) of the lesions examined. The nodular lesions in these carcasses were morphologically similar to early nodular lesions previously described in live chickens as avian keratoacanthomas. A retrospective study compared selected production parameters and disease condemnations to the prevalence of squamous cell carcinoma in 665 flocks of broiler chickens. There was a positive correlation (P < 0.0001) with the occurrence of airsacculitis but a negative correlation with increased age and condemnations for leukosis (P < 0.0001).(ABSTRACT TRUNCATED AT 250 WORDS)