The sites of action cyclic adenosine 3',5'-monophosphate (cAMP) in phosphodiesterase [EC 3.1.4.17] induction in Dictyostelium discoideum were studied. When cAMP was added to the cell suspension from the start of the incubation, the effect of the cyclic nucleotide on the cellular enzyme-induction did not appear for 30 min, then occurred abruptly. From experiments on the addition of cAMP to the cell incubation mixture at various times, preparations for the synthesis of the enzyme appear to occur during the period from 20 min to 30 min after the start of the incubation. After the addition of cycloheximide at 30 min, the enzyme was degraded very rapidly. The half-life of phosphodiesterase was roughly 21 min in the presence of cAMP, and 12 min in its absence. The degradation rates became approximately the same on removing cAMP. When daunomycin and actinomycin D were added to cells previously stimulated with cAMP, phosphodiesterase was still synthesized at a higher rate than in cells not pretreated with cAMP. These results suggest that cAMP acts at two sites at least, i.e., on enzyme synthesis at the transcription level, and in suppressing the degradation of phosphodiesterase.