Cholesterol esterase with optimal activity at pH 6.8 was found in the 40,000 X g supernatant fraction prepared from rabbit alveolar macrophages, thioglycolate-elicited mouse peritoneal macrophages, and the J774 macrophage cell line. The neutral cholesterol esterase activity in these three types of macrophages was of the same order of magnitude as that in the 40,000 X g supernatant fraction of adrenal, heart, and liver but considerably lower than that in adipose tissue. The enzyme prepared from J774 cells was activated about 60% by preincubation with cAMP and Mg-ATP; half-maximal activation was obtained at 2.5 X 10(-7) M cAmP. The activation was completely blocked by a specific protein inhibitor of cAMP-dependent protein kinase. These findings suggest that cytoplasmic cholesterol esters stored in macrophages can be mobilized for release by action of the neutral enzyme described and, further, that this process may be regulated by factors that affect intracellular cAMP levels.