We report results of low-temperature thermodynamic and transport measurements of Pb1−xTlxTe single crystals for Tl concentrations up to the solubility limit of approximately x = 1.5%. For all doped samples, we observe a low-temperature resistivity upturn that scales in magnitude with the Tl concentration. The temperature and field dependence of this upturn are consistent with a charge Kondo effect involving degenerate Tl valence states differing by two electrons, with a characteristic Kondo temperature TK ∼ 6 K. The observation of such an effect supports an electronic pairing mechanism for superconductivity in this material and may account for the anomalously high Tc values. The Kondo effect arises from the interaction of conduction electrons with degenerate degrees of freedom in a material and is usually associated with dilute magnetic impurities in a nonmagnetic host. In such cases, the two degenerate states correspond to the impurity spins oriented up or down. Second order scattering processes involving virtual intermediate states lead to the well-known logarithmic increase in resistivity at low temperatures, which saturates in the unitary scattering limit below a characteristic Kondo temperature [1]. However, other systems comprising two degenerate degrees of freedom can also lead to Kondo-like phenomena [2]. In particular, a "charge Kondo effect," corresponding to dilute impurities with two degenerate charge states, has been proposed in the negative-U Anderson model [3], though to date there has not been an experimental realization of such an effect. Significantly, the quantum valence fluctuations implicit in such a model, which involve pairs of electrons that tunnel on and off impurity sites, also provide an electronic pairing mechanism for superconductivity [4,5,6,7].Thallium is one of several elements that is known to skip valences, such that only Tl 1+ and Tl 3+ are observed in ionic compounds, corresponding to electron configurations 6s 2 and 6s 0 respectively. Compounds that one would otherwise expect to contain divalent Tl are found to disproportionate. For example, TlBr 2 is more specifically Tl I Tl III Br 4 , and TlS is likewise Tl I Tl III S 2 [8]. This effect is driven by the stability of a filled shell in conjunction with the polarizability of the material. In this case, Tl 2+ can be characterized by a negative effective U , where U n = (E n+1 − E n ) − (E n − E n−1 ) < 0 and n labels the valence state [9,10,11]. For this reason, valence-skipping elements provide experimental access to negative-U behavior and are therefore suitable candidate impurities for realizing a charge Kondo effect in a bulk material.