The colony formation of Platydorina caudata (Volvocaceae, Chlorophyta) was studied in detail using time-lapse video and scanning and transmission electron microscopy. A unique feature of P. caudata, a horseshoe-shaped flattened colony comprising 16 cells arranged in a single twisted layer, is formed by 'intercalation', the rearrangement of embryo cells within the colony, which proceeds subsequent to the embryo inversion that brings flagellar ends of cells from the concave to the convex surface. Cell fate is precisely decided in colony formation, suggesting that intercalation is a precisely regulated process in which given cells are intercalated into particular parts of the colony. The presence of flaskshaped cells with an elongated stalk and cytoplasmic bridges during the inversion process strongly suggests that a similar mechanism known in Volvox is also involved in the colony formation of Platydorina.