Growth and the production of volatile sesquiterpenoids by a chlorophyllous cell suspension culture from gametophytes of C. granulata, a leafy liverwort, were examined. Glucose was more effective than 2,4-dichlorophenoxyacetic acid for callus induction, and elimination of glucose from the medium resulted in prompt redifferentiation of plantlets. The cells grew photoheterotrophically, but not in the dark. 1,4-Dimethylazulene, a trinorsesquiterpenoid, was produced as the major volatile sesquiterpenoid in the cultured cells; bicyclogermacrene, compound II, an indene-type aldehyde (a trinorsesquiterpenoid aldehyde), compound I and tetrahydro-l,4-dimethylazulene (a trinorsesquiterpenoid) followed in decreasing order. The azulene was produced both in light and the dark, and its yield was proportional to the growth in light. The yield in light was four times higher than that in the dark. The content of 1,4-dimethylazulene was 0.9-1.0% and that of total essential oils was 2.0-3.3% of the dry weight of the cultured cells. The quantity, quality, and proportions of the volatile sesquiterpenoids of the cell culture were almost equal to those of intact (original) plants and redifferentiated plantlets.