A retrospective study was made on the accuracy of histology and touch smear cytology of the specimens obtained by endoscopic target biopsy. Sixty-five cases of small size excavated-type gastric carcinoma, including 27 cases of early carcinoma were studied. By histology alone, 89% of cases (58 cases) were diagnosed accurately, 85% (55 cases) by touch smear cytology alone and 95% (62 cases) by combined examination. By touch smear cytology, 10 out of 16 specimens were diagnosed as positive, although extensive necrosis of the specimens prevented histologic study. The study demonstrated that the floor as well as the edge and margin of the excavated lesion is an important target site for biopsy. Touch smear cytologic technic is an aid to the diagnosis of gastric malignancy.