Capillary fragments are isolated from the microvasculature of the bovine retina using limited collagenase digestion and sieving. The endothelial cells obtained from these capillary fragments are cultured in media containing platelet-poor plasma supplemented with retinal extract, which contains an endothelial cell mitogen. These cells form typical monolayers in vitro, contain Factor VIII antigen, and can be passaged serially. The pericytes obtained from these capillary fragments are cultured in media containing calf serum. These cells can also be passaged serially, are not contact-inhibited, and do not stain for Factor VIII antigen. Cultures of capillary cells such as these will allow the study of the individual cells from specific microvascular beds involved in various normal and pathological processes.