This experiment was conducted to obtain the basic information on new- and latent-bud formation, and stem vestige arrangement on the rhizome of Panax ginseng C.A. Meyer. Latent buds emerged from meristematic region between shoot and root of the embryo, and new buds for the next year were distributed both at the bottom portion of the stem and the rhizome. In the new buds, organs such as leaf, stem, and flower bud were already completely differentiated, while the latent bud had an undifferentiated meristematic tissue arranged linearly in a vertical line, indicating that each year new- and latent-buds are formed successively. This result suggests that the number of stem vestige may be used for the determination of ginseng age. Key words Rhizome, new-bud, latent-bud, histology, morphology, stem vestige, vestige arrangement.