We have used the 1321N1 astrocytoma cell as a model system for understanding the molecular events involved in signal transduction through phospholipid metabolism. This clonal cell line expresses muscarinic cholinergic receptors (mAChR) that interact with a GTP-binding protein to regulate phospholipase C, rapidly increasing Ins 1,4,5-P3 and mobilizing intracellular Ca2+. Diacylglycerol (DAG) is also increased following mAChR stimulation but the increase in DAG is not significant until several minutes after addition of the mAChR agonist carbachol. To determine the role of Ca2+ and DAG in the activation of protein kinase C (PKC), we assessed PKC redistribution in the intact cell by measuring membrane-associated [3H]phorbol dibutyrate ([3H]PDB) binding. mAChR activation leads to a two-fold increase in [3H]PDB binding which is rapid, transient and temporally correlated with the increase in cytosolic [Ca2+]. When the rise in cytosolic [Ca2+] is buffered with Quin-2 or BAPTA the increase in [3H]PDB binding is inhibited. Studies using subtype-specific antibodies to PKC reveal only the alpha-subtype and confirm that mAChR stimulation causes redistribution of PKC immunoreactivity to a particulate cell fraction only when Ca2+ is increased. Our data suggest that the relatively slow increase in DAG is not the trigger for PKC redistribution and may be secondary to the activation of PKC. Thus, when 1321N1 cells are stimulated with phorbol 12-myristate 13-acetate (PMA) to activate PKC there is a rise in the cellular DAG content. In addition, in cells treated with PMA to down-regulate PKC, carbachol no longer significantly increases DAG mass. These data suggest that PKC is a mediator in the generation of DAG. Analysis of the fatty acid composition of the DAG formed in response to mAChR stimulation suggests that it is mostly derived from phosphatidylcholine (PC) rather than from inositol phospholipids. We examined the effect of mAChR stimulation on PC metabolism in 1321N1 cells. Cells were labelled with [3H]choline which was incorporated into PC and released into the medium when the cells were stimulated with carbachol or with PMA. [3H]Choline release increased throughout a 20-min stimulation. PKC down-regulation abolished both PMA and carbachol-stimulated [3H]choline release. These data support the hypothesis that mAChR stimulation leads to phospholipase D-mediated PC hydrolysis through activation of PKC. Activation of phospholipase D (PLD) was demonstrated by the finding that phosphatidic acid increased in response to PMA or carbachol prior to the increase in PA. In addition, phosphatidylethanol was formed in response to PMA and carbachol in cells exposed to ethanol.(ABSTRACT TRUNCATED AT 400 WORDS)