Callus of Rosmarinus officinalis L. 'Lockwood de forest' was induced from stem segments (3 mm long) using different concentrations of thidiazuron (TDZ). The original stem segments used as explants were found to have a higher level of linalool than was found for leaf segments. Linalool is one of the monoterpenes identified in rosemary plants and it has a pleasant aroma. TDZ has a significant effect on callus formation and callus texture. The callus formed was light green to yellow and/or had some meristimatic dark green cells. TDZ had a significant linear effect on the callus fresh weight. The meristimatic green cells formed on all calli except those proliferated on the lowest concentration of TDZ (0.5 mg/l). No callus was induced from stem segments cultured on TDZ-free medium. The fresh calli from other treatments were soaked in hexane as a solvent for monoterpene analysis using GC/MS. No monoterpenes could be detected in the callus induced on the medium containing the lowest concentration of TDZ. Comparing to the stem segments taken from the parent plants only 4 of 10 monoterpenes identified were found in the callus: α-pinene, β-pinene, 1,8-cineole, and camphor.