Ultrastructural studies of spermiogenesis in Phenacogrammus interruptus using transmission electron microscopy revealed that the process is characterized by flagellum development, formation of a cytoplasmic canal, nuclear rotation, and nuclear fossa formation. Chromatin compaction proceeds during spermatid transformation within the spermatocysts as well as after spermiation within the lumen of the efferent ducts. The spermatozoon is of primitive type and exhibits characters typical for Type I aquasperm. The head consists of a spherical nucleus with highly condensed chromatin and a centrally located electron lucent area connected to a moderate-sized nuclear fossa. The nuclear fossa contain centrioles in perpendicular arrangement, surrounded by osmiophilic fibrous material. In the short midpiece, several mitochondria and vesicles are unevenly distributed in the cytoplasm forming the cytoplasmic collar at the base of the nucleus. The cytoplasmic collar surrounds the initial part of the flagellum, running in the cytoplasmic canal. The flagellar axoneme has a typical pattern (9 x 2 + 2) and the flagellum contains membranous compartments in the portion immediately posterior to the termination of the cytoplasmic canal.