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Dermal melanin is produced by melanocytes, which are found in the stratum basale of the epidermis.
Melanin is produced by special cells called melanocytes. More melanin is produced when the skin is not exposed to sunlight. Melanin ranges in color from yellow to brown to black. The stratum basale cells phagocytize the melanin produced by the melanocytes and it accumulates within them. Freckles and moles are seen where melanin is concentrated in one spot.