The occurrence of intracellular fibrillar material (frequently banded) has been studied in normal costal and tracheal chondrocytes of rats at various ages ranging from 1 to 90 days. The study methods have included digestion with collagenase, electron histochemical techniques and routine electron microscopy. Banded fibrillar material has been observed intracellularly in vesicles or in electron-dense bodies in perichondrial and subperichondrial chondrocytes from rats of all ages. These fibrils and extracellular collagen fibrils are partially and equally degradable by collagenase, they are positive after staining with phosphotungstic acid or with silver nitrate methenamine, and their lucency corresponds with that of collagen when they are stained only with lead citrate. They have not been observed in intracellular clefts. They, therefore, seem to be formed intracellularly and to be exocytosed subsequently. Large vesicles and electron-dense bodies seem to be derived from Golgi saccules. A mechanism whereby banded intracellular fibrils could be formed from tropocollagen molecules is postulated. The frequency of occurrence and the diameter of intracellular fibrils seems to increase with increasing age.