The recently described genus Rhizonema is among the most important cyanobacterial partners in lichen symbioses, but its morphological characterization in the genus diagnosis—true branching of the T-type—appears at odds with several published figures showing false branching. We investigated cyanobiont branching and cell division with light microscopy in two basidiolichens from Florida and one from Japan, including aposymbiotically cultured material of the latter. Mycobiont species identities (Cyphellostereum jamesianum, Dictyonema darwinianum, and D. moorei) and photobiont genus identity (Rhizonema) were corroborated with ITS and rbcLX sequences, respectively. Single and paired false branching occurred commonly in all three strains examined. False branches developed adjacent to necridic cells or heterocytes, or by separation of vegetative cells at compression folds in the trichome. Non-transverse cell divisions, usually oblique, were observed in two of the three Rhizonema strains examined. T-type true branches sometimes arose from such divisions, although oblique growth from the branch cell often resulted in ambiguous branch junctions. Additionally, Y-type true branches appeared to grow from contorted filaments. In cultured material, a kind of pseudo-branch sometimes arose from single- or several-celled segments liberated from trichome apices. The segments attached secondarily to filaments and grew there as apparent branches. We conclude that Rhizonema is a genus of considerable morphological flexibility, with multiple modes of branching possible in a single strain. While true branching or non-transverse divisions, when observable, may help distinguish Rhizonema from the phenotypically similar Scytonema, false branching occurs commonly in both genera, and therefore cannot be used to distinguish them.