This paper reviews the literature on cold-adapted micro-organisms which might exist in ice and permafrost. Properly identified, microbial markers in the cryolithozone could be used in palaeoenvironmental reconstructions, in distinguishing between epigenetic and syngenetic depositional sequences, and in the recognition of secondary thaw unconformities. Cryobiological problems include (1) whether the bacteria are dead, dormant or in the active state, and (2) what factors determine the preservation of cell structures. A possible consequence of permafrost thawing, based upon predicted global warming scenarios, is that there may be an increase in microbial activity and an increase in active layer thickness.