In 1930, Iwata isolated lysolecithin from polished rice grains. Though Iwata proved that the oral administration was not harmful, the biological significance of the presence of lysolecithin in rice grains was a problem left unsolved for a period covering two decades. It was not made clear whether'lysolecithin was a constituent of rice grains, or was formed from lecithin naturally or artificially either in storage or during the isolation procedure. Neither was the location of lysolecithin in the grains determined. This article makes it clear that lysolecithin is n normal constituent of non-glutinous rice grains, being formed during the stage of ripening, and is practically unchanged during storage. Lysolecithin is present exclusively, in the endosperm of non-glutinous rice grains, but is not present in glutinous grains.