Understanding the molecular mechanisms that control cell proliferation requires the identification of the early signals important for initiating a mitogenic response. In this context, the activation of Ca2+-sensitive, phospholipid-dependent protein kinase (protein kinase C), which is stimulated by diacylglycerols and serves as a major phorbol ester receptor, may play an important part in signalling mitogenesis. This conclusion is based on two main lines of evidence. Firstly, activation of protein kinase C in intact quiescent fibroblasts is one of the earliest events elicited by a variety of growth-promoting agents including serum, platelet-derived growth factor (PDGF), vasopressin and bombesin, as judged by the increase in the phosphorylation of a cellular protein characterized by an Mr of 80 000 and a pI of 5. Secondly, the synthetic diacylglycerol, 1-oleoyl-2-acetylglycerol, which directly competes with [3H]phorbol dibutyrate for binding to specific receptors in intact 3T3 cells and rapidly stimulates protein kinase C in these cells, is a potent mitogen for Swiss 3T3 cells, acting synergistically with other growth factors. We propose that activation of protein kinase C may be one of the early signals that mediate the mitogenic effects of a variety of growth factors and peptide hormones in quiescent fibroblastic cells.