Of 8 strains of Streptococcus cremoris tested, 5 grew almost as well in defined media in which various essential amino acids were supplied in dipeptides as they did in media containing the equivalent free amino acids. The remainder grew poorly or not at all in the peptide-containing media. Growth of peptide-utilizing strains was inhibited by also including structurally-related dipeptides in the medium, presumably due to competition for uptake by transport system carriers. Both types of starters produced cell-free dipeptidases recoverable from the medium of exponential phase cultures. Addition of the partly-purified extracellular dipeptidases to dipeptidecontaining test media initiated growth in strains unable to use peptides. Str. lactis grew in defined peptide media, but the further addition of structurally-related dipeptides did not inhibit growth, either bcause each dipeptide was transported by a specific carrier or because peptides were hydrolysed extracellularly. The presence of cell-bound extracellular dipeptidase was indicated by the hydrolysis of dipeptides with washed whole cells in buffer. This was not observed with Str. cremoris strains.