Isolated human hair follicle germinative epidermal cells were observed in vitro for the first time. When cultured alone, this small, round, novel cell type did not grow, divide, take on an outer root sheath-type appearance, or display any obvious signs of epidermal differentiation. We have previously described comparable cells from rat vibrissa follicles. However, in combination with human hair follicle dermal papilla populations, the germinative epidermal cells were stimulated into proliferative and complex interactive behaviors. This included the formation of composite organotypic structures containing not only impressively intact basement membrane, but also the hair-specific form, glassy membrane.