Aureobasidin A, an antifungal antibiotic inhibiting a wide range of pathogenic fungi, is lethal for growing cells of susceptible fungi, We did cytological studies on the mechanism of its fungicidal action against Saccharomyces cerevisiae, When cultures were treated with 5.0 mu g of aureobasidin A per mi, the numbers of viable cells started to decrease after 2 to 3 h of incubation, and most cells had lost viability after 5 to 6 h, When cell death in the treated cultures began, amino acids released by the cells could be detected, indicating disruption of the cell membrane, The proportion of cells with a single small bud or two or more buds increased as the population of viable cells decreased, Most such cells had the DNA content of cells in the G(2) phase of the cell cycle, suggesting that the drug inhibited some cellular process involved in normal bud growth but did not affect DNA replication, Disruption of actin assembly was found in many cells treated for 2 to 3 h, as was chitin delocalization. The results suggest that aureobasidin A has a previously unknown mechanism of fungicidal action toward S. cerevisiae. It causes aberrant actin assembly, inhibiting the normal budding process and leading to cell death, probably through destruction of membrane integrity.