Orsellinic acid was found in the medium on which C. cochloides was grown for 6 weeks. The acid was identified by paper chromatography in 6 different solvents; by determination of the melting point; by melting the acid and identification of the orcin formed; by the agreement of the ultraviolet absorption spectra with that of authentic orsellinic acid; and by the synthesis of 4,6-dihydroxy-2-methyl benzoic acid methyl ester from the isolated orsellinic acid.