In the retina of the cat the axons of the nerve fibre layer are unmyelinated and are provided with a C.N.S. myelin sheath only in the extraocular part of the optic nerve. The present study demonstrates that in the apparently normal cat retina close to the optic disc, some axons of the nerve fibre layer run for a short distance in the perivascular space of the retinal arteries. While coursing in the perivascular space, these C.N.S. axons become transiently myelinated by Schwann cells, which form a typical P.N.S. myelin sheath. These P.N.S. myelin sheaths terminate at a heminode in the transitional zone in which the C.N.S. axons penetrate the perivascular glial sheath in order to leave or to re-enter the nerve fibre layer. It is suggested that the Schwann cells, which elaborate the P.N.S. myelin around C.N.S. axons, are descendants of the Schwann cells of the perivascular autonomie nerves. The present study shows that Schwann cells are able to provide previously unmyelinated C.N.S. axons with a P.N.S. myelin sheath.