A new species of Aleurodiscus is described and designated Aleurodiscus canadensis. The basidia of this fungus are regularly two-spored, but occasionally basidia bearing three spores or rarely one spore are encountered. From the cultural and cytological evidence presented the normal life cycle may be described as follows. The cells of the subhymenium are dikaryotic with clamp connections. The young basidia are at first binucleate. Following karyogamy the fusion nucleus undergoes reduction division producing the usual tetrad of nuclei. Each spore of the two-spored basidium receives two of the four daughter nuclei. The two nuclei in these spores undergo further division while the spore is still attached or shortly after discharge, so that the mature spore contains four nuclei. Such a spore is capable of producing a mycelium bearing clamp connections. Although the majority of the spores produce mycelia with clamp connections, a spore may occasionally develop a mycelium that does not bear clamps. When such exceptional mycelia are mated in compatible combinations, dikaryotic mycelia with clamp connections are obtained. From the mating of a number of these exceptional haplonts the heterothallic and bipolar relationship is made evident. Although complete cytological information on the spores that give rise to these exceptional haploid mycelia is lacking, it is probable that these spores are originally uninucleate and that this results from the distribution of the four nuclei in a three-spored basidium in such a way that one spore receives two nuclei and the other two spores one nucleus each. The two nuceli that migrate into the normal spore, therefore, probably bear allelomorphic inter-fertility factors. If this species can be considered homothallic, the homothallism is a different type from that found in species that complete their life cycle from the development of a single uninucleate spore. The necessity for such a distinction is stressed.