Melanocytes are pigment-producing cells found in the basal layer of the oral epithelium. They contain melanin granules called melanosomes and transfer melanin to surrounding keratinocytes. Melanocytes develop from neural crest cells during embryogenesis and their main function is to absorb ultraviolet radiation and protect against DNA damage. The document discusses the structure, development, and role of melanocytes in determining skin and oral pigmentation. It also covers genetic and environmental factors that influence melanin production.