Sclerotia of Paxillus involutus (Batsch) Fr. were produced in association with Pinus strobus L. and Pinus resinosa Ait. in plastic growth pouches and on agar-solidified nutrient medium. They were fixed and embedded for light microscopy and scanning and transmission electron microscopy. Sclerotia consisted of an outer pigmented rind, a thin cortical layer, and a large central medulla of isodiametric cells. Large deposits of glycogen, as well as smaller deposits of protein and lipid, were present in medullary and cortical cells. Structural characteristics indicate that these sclerotia are persistent propagules which may function to reinfect tree roots following environmental stresses. Since they can be produced in pure culture, it may be possible to inoculate seedlings directly with sclerotia.