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Hi, Pam, This sounds like azalea gall (to which rhododendrons are also susceptible). Gall is a fungus, spread by rain. It normally occurs during cool, wet weather. If this is gall, you can pick it off by hand; fungicides can be applied. See you local organic nursery supply store. You did not mention the leafs; these typically curl up when fungus is present.

By the way, even though the plant gets a fair amount of sun, its bed could retain dampness, which can be a contributing factor.

We suggest, if possible, you take a sample of the globules and a photo of the plant to your local nursery. They may be able to identify this in a jiffy.
And remember, too: This is a good time to spread some aged manure and compost under the shrub. As the saying goes: “in the fall or not at all.” Stir up the existing soil and work the new matter it, if you do this—but be gentle. Rhodo roots tend to be shallow.

We hope this helps.

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