Four-and-a-half-month-old infants' ("N"=100) category formation and use was studied in a series of five experiments. For each experiment, the test events featured a display composed of a cylinder and a box. Previous research showed that this display is not clearly parsed as a single unit or as two separate units by infants of this age. Immediately prior to testing, infants were shown a set of category exemplars. Knowledge about this category could help infants disambiguate the test display, which contained a novel exemplar of this category. Clear interpretation of the test display as composed of two separate units (as indicated by infants' longer looking at the move-together than at the move-apart test event) was taken as evidence of category formation and use. In Experiments 1 and 5, infants' prior experience with a set of three different boxes that were similar to the test box facilitated their segregation of the test display. Experiment 2 showed that three different exemplars are necessary: prior experience with any two of the three boxes used in Experiment 1 did not facilitate infants' segregation of the test display. Experiment 3 showed that variability in the exemplar set is necessary: prior experience with three identical boxes did not facilitate infants' segregation of the test display. Experiment 4 showed that under these conditions of very brief prior exposure, similarity between the exemplar set and test box is necessary: prior experience with three different boxes that were not very similar to the test box did not facilitate infants' segregation of the test display. Together, these findings suggest that: (a) number of exemplars, variability, and similarity in the exemplar set are important for infants' category formation, and (b) infants use their category knowledge to determine the boundaries of the objects in a display.