A case of epidermal dysplasia is reported which squamous-cell carcinomata developed in the nail beds of two fingers. Three fingers in this case were analyzed pathologically and compared with three fingers of a normal man of the same age. In epidermal dysplasia there was irregularity of all strata of the nail bed and a low-grade inflammatory reaction in the corium. It is our impression that the irregularity of growth in epidermal dysplasia could in itself be a precursor to the development of squamous-cell carcinoma.