Hyphal fusions forming in secondary mycelia of Phanerochaete velutina were examined using combined light and electron microscopy. Only 'self' fusions, occurring between hyphal compartments derived from the same colony, were studied. At points of contact, fusions formed from a single opening which expanded radially by highly localized lysis of the surrounding cell wall. Fusion pore enlargement failed to reach the full hyphal diameter and a rim of undissolved cell wall remained marking the original point of contact. Within 2 h of this, the compartments became re-partitioned by septum formation, synthesis being associated with mitotic division and beginning precisely at the site of fusion pore expansion. Septa formed at fusions showed identical structure and development to those occurring in unfused compartments.