Abstract: Subdivision is a powerful paradigm for the generation of surfaces of arbitrary topology. Given an initial triangular mesh the goal is to produce a smooth and visually pleasing surface whose shape is controlled by the initial mesh. Of particular interest are interpolating schemes since they match the original data exactly, and play an important role in fast multiresolution and wavelet techniques. Dyn, Gregory, and Levin introduced the Butterfly scheme, which yields $<$i$>$C$<$sup$>$1$<$/sup$>$$<$/i$>$ surfaces in the topologically regular setting. Unfortunately it exhibits undesirable artifacts in the case of an irregular topology. We examine these failures and derive an improved scheme, which retains the simplicity of the Butterfly scheme, is interpolating, and results in smoother surfaces.