Carotenoid pigments in W. dermatitidis, the first pathogenic, dematiaceous fungus in which carotenoid pigments nave been reported, are located primarily (81%) in lipid organelles which floated on the surface of the supernatant fraction of lysed cells. Pigment in this fraction could be extracted with ethyl ether without prior treatment with acetone indicating the pigment is unbound in the lipid organelle. Eight percent remains after exhaustive ether extraction and is recovered after the sample is treated with acetone indicating this fraction is non-covalently bound to proteins in the membranes associated with the lipid organelle. The remaining pigment (about 12%) represents contamination of the supernatant with the lipid organelles.