In Aedes aegypti (Singapore strain), a refractory host, there was a marked progressive decline of developing larvae of Breinlia booliati during the incubation period. However, in Aedes togoi, a susceptible host, the filarial larvae developed normally and the number of larvae remained constant throughout the incubation period. Encapsulation and melanization of B. booliati larvae in Ae. aegypti and Ae. togoi were studied. Ae. togoi occasionally mounted a defence reaction to the infection. In Ae. aegypti, various stages of filarial larvae were frequently affected by the defence mechanisms of the host, and a relatively large number of melanized larvae were recovered in dissections throughout the incubation period. The process of melanization is described and the relationship between melanization and haemocytes of mosquitoes is discussed. Haemocytes of the mosquito host appeared to be involved in the encapsulation of filarial larvae, as evidenced by adherence of cells to the cuticle of the larvae and the formation of a translucent, gelatinous envelope which contained intact cells, necrotic cells, spaces and numerous whitish granules. The possible involvement of a humoral reaction in bringing about the degeneration and retardation of the filarial larvae is discussed.