Actin was identified with S1-labeling in type I and II cells, pericytes, and capillary endothelial cells in the peripheral lung of the adult rat. In type II cells abundant actin was present in the apex of cells, in microvilli, and in close association with lamellar bodies near the cell surface. Lamellar bodies secreting their content into the lumen of alveoli were always surrounded by a thick layer of actin-like material. In specimens treated with cytochalasin D the surface of type I, type II and contractile interstitial cells became irregular. In type II cells, lamellar bodies were no longer surrounded by actin-like material and no exocytic profiles of lamellar bodies were encountered. In type II cells actin filaments may be involved in moving lamellar bodies through the cytoplasm and/or in their secretion into alveoli. These observations also suggest that intact actin filaments may be required for maintenance of cell shape in various lung cells and that cells containing actin may be capable of limited contraction.