The ultrastructure of Malassezia pachydermatis and its budding process was investigated by scanning and transmission electron microscopy. The innermost layer of the cell wall showed the serrated structure characteristic of the genus Malassezia. In the daughter cell, this structure became more defined as the cell grew. The mode of conidium ontogeny was monopolar blastic development with a collarette. The appearance was similar to that reported previously for Malassezia furfur, with the following difference: the budding base was 0.9-1.1 microns in diameter which was broader than that of M. furfur (0.5-0.7 microns).