A suspension of fine carbon particles was added to cord blood of healthy premature and full-term infants, and the mixture was incubated for 3 h, after which the uptake of carbon particles by blood leukocytes was examined. The results were compared with those from the blood of adults. A gradient of phagocytic activity was observed. The most active uptake of carbon was by the leukocytes of premature infants, the least active by leukocytes of adults. In cord blood and blood of adults, phagocytic activity was evident in both monocytes and neutrophils..In addition, two types of what have been termed ‘lymphocytoid’ phagocytes were seen. These resemble lymphocytes in their morphology. One type possesses basophilic cytoplasm, and has been found only in premature cord blood. The presence of lymphocytoid phagocytes affords a further indication of the differences between the circulating lymphocyte population in the prenatal and perinatal period as compared with the adult.