Abstract. The Fornax Cluster galaxy FCC 35 shows an unusual multiply peaked integrated HI profile. We have now observed FCC 35 with the Australia Telescope Compact Array and have found a compact HI source with M_HI = 2.2 x 10^8 Msun; and a spatially overlapping complex of HI gas with the same mass. By combining optical observations with the HI data, we are able to identify FCC 35 as a young compact source of star formation with a nearby intergalactic HI cloud that is devoid of stars. We classify FCC 35 as a blue compact dwarf or HII galaxy, having large amounts of neutral hydrogen, very blue colors (U - V = 0.1), and a low-metallicity spectrum with strong narrow emission lines. Together with the presence of the HI cloud, this suggests that FCC 35 is the result of a recent interaction within the Fornax Cluster.