Studies were performed to determine whether the sera of the patients with granuloma annulare had monocyte modulating activities. As indicators of monocyte modulation, spreading and aggregation were used. As a control, similar experiments were performed on pooled normal human sera. Normal human monocytes were incubated with either test sera or control sera. The percentage of spread cells was estimated at 6 hr of incubation and that of aggregated cells was estimated at 24 hr of incubation. The percentage of spread cells and aggregated cells in the monocytes incubated with granuloma annulare sera was higher than that of the cells incubated with pooled normal human sera. Thus, granuloma annulare sera may have a greater ability to induce monocytes to spread and aggregate than do normal human sera.