Previous studies have indicated that developing avian granulosa cells collected from follicles 2-3 wk prior to ovulation (e.g. 6-8-mm in diameter) are steroidogenically incompetent, apparently due to a lack of functional cytochrome P450 side-chain cleavage (P450scc) enzyme activity. The present studies were designed to test this hypothesis by determining the absence or presence of P450scc messenger RNA, immunoreactive protein, and enzyme activity in granulosa tissue of developing hen ovarian follicles. Additionally, the interactive roles of FSH, the adenylyl cyclase-cAMP system, and the protein kinase C pathway in granulosa cell differentiation were investigated. Granulosa cells collected from developing, 6-8-mm follicles were found to contain extremely low but detectable levels of a single, 2.0-kb P450scc mRNA transcript, as well as immunoreactive P450scc protein (53 kDa). However, this protein was apparently incapable of converting 25-hydroxycholesterol to pregnenolone in a cell-free system. Preincubation of granulosa cells with ovine FSH or forskolin for 24 h rendered the cells capable of converting cholesterol precursor to pregnenolone during a subsequent 3-h incubation. Inclusion of the protein kinase C activator, phorbol 12-myristate 13-acetate (PMA), in the preincubation medium blocked the stimulatory actions of FSH and forskolin on the induction of P450scc activity; however, PMA-preincubation did not alter the ability of granulosa cells to convert exogenous pregnenolone to progesterone compared to vehicle-pretreated cells. These data suggest that steroidogenic incompetency in differentiating avian granulosa cells is primarily due to a lack of active P450scc enzyme.(ABSTRACT TRUNCATED AT 250 WORDS)