The micro‐incubation chamber technique of Cunningham (1965) has been used for testing transformed cells in sheep red cell stimulated lymphocyte cultures for the ability to give pericellular lysis (lytic plaques) in sheep red cell monolayers. The variations around the means for total cell numbers and plaque‐forming cell numbers in series of chambers plated in parallel have been estimated.The plaque‐forming ability was found to be dependent on complement and temperature indicating an immunological lytic reaction. Evidence is presented for active protein synthesis in and liberation from the cells showing the ability to form lytic plaques.Cells stored at low temperature were able to form lytic plaques after several days' storage although a gradual reduction in the plaque‐forming ability was noticed.