The origin and distribution of projections from the lateral to the medial septal complex were studied at the light- and electron-microscopical level in the rat and the guinea pig, with the use of sensitive anterograde tracing techniques. Injections in the lateral septal complex resulted in only weak to moderate labeling in the medial septal nucleus. In contrast, injections in all but the ventral subdivision of the lateral septal complex labeled restricted terminal arborizations in the angular portion of the vertical diagonal band. Analyses at the electron-microscopical level indicated that these fibers form both symmetrical and asymmetrical synapses with dendrites and somata, but not with axons. These findings are discussed in the light of a presumed functional circuit from the hippocampal formation, via the lateral septal complex, to cells in the medial septal complex that originate projections to the hippocampal formation.