A total of 269 soil samples collected from different habitats in Madras, India, were screened for the presence of dermatophytes by the hair-baiting technique. Three strains of Trichophyton mentagrophytes and 16 strains of Microsporum gypseum complex were isolated. These strains were subjected to the mating experiment. 2/3 soil isolates of Trichophyton mentagrophytes belonged to Arthroderma vanbreuseghemii (+) mating type, and 1/3 was Arthroderma vanbreuseghemii (-) mating type. Similarly 6/70 clinical strains of Trichophyton mentagrophytes isolated in our previous study also belonged to Arthroderma vanbreuseghemii (+) mating type. These 6 strains were isolated from severe cases of tinea capitis in children belonging to rural Madras. The teleomorphic and mating type homology between the clinical and soil isolates of T. mentagrophytes suggest that soil may act as reservoir for these organisms. The incompatible clinical strains of T. mentagrophytes var. interdigitale and A. vanbreuseghemii showed DNA homology, thereby establishing the epidemiologic link which supports the above findings.