The Fermi pencil-beam approximation describes the broadening of a monoenergetic, nearly monodirectional particle beam in an optically thick system in which the mean scattering angle is small and large-angle scattering is negligible. This physical problem has applications in such diverse fields as astrophysics, materials science, electron microscopy, and radiation cancer therapy. The Fermi equation is derived two different ways: as an asymptotic limit of the Fokker-Planck equation for σtr → 0 and as an asymptotic limit of the linear Boltzmann equation for σtr→ 0 and σt → ∞. Some numerical results illustrating the Fermi approximation are also given.