The objective of this study was to determine which cells in the medaka (Oryzias latipes) embryo participate in the rhythmic contraction waves that propagate slowly across the yolk sac throughout most of embryonic development. To facilitate observation of the cells, we inhibited the contractions temporarily by incubating the embryos with o-nitrobenzylacetate, n-heptanol, or n-octanol. After we washed out the inhibitor, isolated cells in a subepithelial layer (similar to the stellate layer in Fundulus heteroclitus) began to pulse. Stellate cells are much smaller than cells in the surface epithelium (enveloping layer) and are present throughout the developmental period during which the contractions occur, stage 14 to stage 26. We conclude that the active force for the rhythmic contraction waves is provided by cells in the stellate layer and that cells in the enveloping layer are passively deformed by the contraction of cells in the closely apposed stellate layer.