The differentiation of nerve cells and nematocytes in Hydra attenuata has been investigated by labelling interstitial cell precursors with PHJthymidine and following by autoradiography the appearance of labelled, newly differentiated cells. Nematocyte differentiation occurs only in the gastric region where labelled nematoblasts appear 12 h and labelled nematocytes 72—96 h after addition of 2H thymidine. Labelled nerves appear in hypostome, gastric region, and basal disk about 18 h after addition of 3H thymidine. The lag in the appearance of labelled cells includes cell division of the precursor as well as differentiation since nerves and nematocytes have 2JI postmitotic nuclear DNA content. A cell flow model is proposed for interstitial cel...