We have recently shown that nanomolar concentrations of somatomedin-C (Sm-C), are capable of enhancing the FSH-mediated (but not basal) accumulation of progesterone (Po) by cultured rat granulosa cells. To further characterize this direct cytodifferentiative effect of Sm-C, granulosa cells from immature, hypophysectomized, diethylstilbestrol-treated rats were cultured under serum-free conditions for up to 96 h. Concurrent treatment with highly purified Sm-C (50 ng/ml) produced 10.2- and 3.6-fold increments in the FSH (20 ng/ml)-stimulated accumulation of Po and 20 alpha-hydroxy-4-pregnen-3-one, respectively. Sm-C-augmented Po biosynthesis was dose- and time dependent, but was independent of the FSH dose employed. Significantly, this effect of Sm-C could not be accounted for by enhancement of cellular viability or plating efficiency, nor by an increase in the number of cells, or their DNA synthesis. Furthermore, specific inhibition of DNA synthesis with cytosine-1-beta-D-arabinofuranoside was without significant effect on the ability of SM-C to enhance FSH-supported Po biosynthesis. Insulin, like Sm-C, also synergized with FSH in the induction of Po biosynthesis. However, insulin [ED50 = 19.2 +/- 1.6 (SE) micrograms/ml] was approximately 4800-fold less potent than Sm-C [ED50 = 4.0 +/- 0.3 (SE) ng/ml] in this regard, and exerted little or no effect at concentrations presumed to saturate the putative high affinity granulosa cell insulin receptor. Although maximal stimulatory doses of Sm-C (75 ng/ml) or insulin (100 micrograms/ml) produced comparable increments in FSH-supported Po biosynthesis, combined treatment with maximal doses of both peptides did not prove additive. Pertinently, the direct cytodifferentiative effect of Sm-C is exerted at (nanomolar) concentrations compatible with its receptor-binding affinity as observed in all other cell types studied. Thus, Sm-C is not likely to be acting through the putative high affinity insulin receptor but rather through its own high affinity recognition sites. Similarly, the cytodifferentiative action of high dose insulin may reflect the consequences of its cross-interaction with the putative Sm-C, rather than the insulin receptor. These findings are in keeping with the suggestion that the granulosa cell may be the site of Sm-C reception and action and that Sm-C of intraovarian or circulatory origin may participate in the differentiation, as well as replication, of the developing granulosa cell.