The relationships between pigment granules and the prominent smooth endoplasmic reticulum in the chromatophores of the shrimp, Palaemon affinis Heilprin, were investigated by transmission electron microscopy. Different types of pigment granules within the chromatophores were found to exhibit a close structural continuity with the cisternal membranes. The membranes of membrane-bound pigment granules were seen to be continuous with those of the ER cisternae, while pigment granules lacking membranes appear to adhere to the external cisternal surfaces. The reticulum, which seems to form a network enmeshing the pigment granules, is proposed to be part of a continuum linking these granules with their translocating force.