Light and electron microscopic investigations of the roots of Rhododendron and other ericaceous plants growing in the vicinity of Clavaria fruiting structures showed a fungal infection consistently associated with the epidermal and cortical cells of the "hair roots." Uninfected hair roots consisted of an epidermis and a one cell thick cortical layer surrounding the stele. Secondary growth in the stele and formation of a cork layer by division of the pericycle caused the cortex and epidermis to slough as the root matured. The structure of the infected hair roots was similar except for the presence of fungus in epidermal and cortical cells. As judged by the appearance of septa, at least two fungi were involved, one with dolipore septa that formed hyphal coils in the infected cells, and one with septa associated with Woronin bodies that occurred as single hyphal strands. Hyphae were found penetrating the cells from the exterior of the root and also passing from cell to cell. No correlation between fungal infection and the phenolic content of the cells could be made. Dissolution of both the fungal and host cytoplasm appeared to occur as the cells were sloughed. It appears that the fungus–root relationship is complex and is limited in duration to a short period of time during the development of the hair roots.