The bicolor damselfish (Stegastes partitus) is a tropical marine teleost naturally affected by multiple neurofibromas and chromatophoromas on South Florida reefs. Damselfish neurofibromatosis is a transmissible disease caused by a subcellular agent. Development of tumors is associated with the appearance of a series of extrachromosomal DNAs ranging in size from 1.2 to 7 kb that appear to be the genome of a small virus-like agent which we termed the damselfish virus-like agent (DVLA). This DNA was found at high copy number in most spontaneous and experimentally induced tumors. An essentially identical pattern of DNA, but with lower copy numbers, was observed in non-tumor-bearing tissue from diseased fish. Copy numbers of DVLA DNA in tumors and nontumorous tissues increased as the disease progressed from early to late stages. In healthy fish in which DVLA DNA was detected, the quantities were much lower than those in diseased fish. Healthy fish from populations with a high prevalence of disease exhibited more infected tissues than fish from populations with low levels.