Living squamous cells are found just below the stratum corneum. These cells have moved here from the lowest part of the epidermis, the basal layer. The cells of the basal layer, called basal cells, continually divide to form new keratinocytes. These replace the older keratinocytes that wear off the skin's surface. Cells called melanocytes are also found in the epidermis. These skin cells make a brown pigment called melanin. Melanin gives the skin its tan or brown color. It protects the deeper layers of the skin from some of the harmful effects of the sun. When skin is exposed.