We report the discovery of the optical counterpart to GRB 980326. Its rapid
optical decay can be characterized by a power law with exponent -2.10 +/-
0.13 and a constant underlying source at R-c = 25.5 +/- 0.5. Its optical co
lors 2.1 days after the burst imply a spectral slope of -0.66 +/- 0.70. The
gamma-ray spectrum as observed with BATSE shows that it is among the 4% so
ftest bursts ever recorded. We argue that the rapid optical decay may be a
reason for the nondetection of some low-energy afterglows of GRBs.