  We report on the discovery of the optical/IR counterpart of the 15.8s
transient X-ray pulsar XTE J1946+274. We re-analysed archival BeppoSAX
observations of XTE J1946+274, obtaining a new refined position (a circle with
22" radius at 90% confidence level). Based on this new position we carried out
optical and infra-red (IR) follow-up observations. Within the new error circle
we found a relatively optical faint (B=18.6) IR bright (H=12.1) early type
reddened star (V--R=1.6). The optical spectra show strong H-alpha and H-beta
emission lines. The IR photometric observations of the field confirm the
presence of an IR excess for the H-alpha--emitting star (K=11.6, J--H=0.6)
which is likely surrounded by a circumstellar envelope. Spectroscopic and
photometric data indicate a B0--1V--IVe spectral-type star located at a
distance of 8--10kpc and confirm the Be-star/X-ray binary nature of XTE
J1946+274.
