The physical consequence of the collisional interaction of the Saturnian E-
ring particles with the icy satellite Enceladus is examined. It is suggeste
d that Enceladus should be surrounded by an extended halo of dust particles
. In association with the generation of impact vapor clouds, an abundance o
f tiny smoke particles of 10-100 A diameter might be created and subsequent
ly picked up by the corotating magnetosphere. The Saturnian system could th
erefore be immersed in a disc of fine dust particles. The E-ring particle i
mpact process is also important in providing a mechanism for surface mass t
ransport and removal at Enceladus, For example, because of impact, erosion
craters of diameters less than 2 km could be significantly eroded in region
s where the surface age is only 100 million years old.