Two girls, aged 3 and 6 years, were treated for precocious pseudopuberty associated with a follicular ovarian cyst. Both patients had breast enlargement, areolar pigmentation, and elevated serum estradiol levels. In one girl, a normal displaced uterus was palpated; in the other, an ovarian cyst was identified by ultrasonography. Surgical treatment consisted of limited resection of the follicular cysts. Rapid regression of breast hypertrophy and return of estradiol levels to normal occurred in both children, who were followed for six and 1.5 years. We believe that a conservative operation that preserves normal ovarian tissue bilaterally is the procedure of choice for treating this condition.