  The hot star HDE 326823 is a candidate transition-phase object that is
evolving into a nitrogen-enriched Wolf-Rayet star. It is also a known
low-amplitude, photometric variable with a 6.123 d period. We present new, high
and moderate resolution spectroscopy of HDE 326823, and we show that the
absorption lines show coherent Doppler shifts with this period while the
emission lines display little or no velocity variation. We interpret the
absorption line shifts as the orbital motion of the apparently brighter star in
a close, interacting binary. We argue that this star is losing mass to a mass
gainer star hidden in a thick accretion torus and to a circumbinary disk that
is the source of the emission lines. HDE 326823 probably belongs to a class of
objects that produce short-period WR+O binaries.
