Sequential effects of colonisation by the wood decaying Fistulina hepatica were examined microscopically in naturally infected and artificially inoculated heartwood of pedunculate oak (Quercus robur). For 6 mo, the deposition of brown materials within parenchyma cells containing hyphae was the only visible effect of colonisation. After 12 mo degradation occurred but was initially confined to parenchyma of xylem rays, in which the secondary cell walls showed helically orientated internal cavities containing hyphae, as in a soft rot. The hyphae were covered with a resinous material and persisted in a herringbone pattern after the secondary walls became heavily degraded. The adjacent libriform wood fibres also showed cavity formation. By contrast fibre-tracheids were mainly affected by a brown rot. uv-microscopy indicated that cell types in which the soft rot mode occurred were rich in syringyl lignin, whereas the brown rot was associated with cells rich in guaiacyl lignin. Thus, the present study shows that F. hepatica possesses dual modes of degradation which appear to correlate with the different lignin composition within cell types of oak.