HTLV-III was studied in ocular fluids and cells in order to characterize its possible involvement in opthalmic disease in AIDS and possible transmissibility through ocular fluids. a. HTLV-III was isolated from the tear fluid of patients with AIDS by using Schirmer's filter paper strips and infection of lymphocytes plus retransmission to other lymphocytes. b. Studies indicate that conjunctival epithelial cells from AIDS patients contain HTLV-III and may therefore serve as a reservoir for the virus. c. Further studies in progress suggest more widespread presence of HTLV-III in ocular fluids. d. Precautions are recommended during ophthalmic examination in order to prevent any possible spread of the virus by this route. Although this has not been documented to occur, the Centers for Disease Control has issued such precautions.