Isolated muscle cells from adult rat heart were used to study myocardial degradation of insulin and the reactions after the initial binding event. After 60 min of association at 37 degrees C, 90% of specifically bound insulin could be dissociated from the cells; this fraction remained unaltered under steady-state conditions (up to 180 min). To assess the nature of cell-associated radioactivity, cardiocytes were solubilized and filtered on Sephadex G-50. After 5 min of association only intact insulin was observed, whereas under steady-state conditions 4% of 125I-labelled insulin bound to the cells was degraded to iodotyrosine-containing fragments. The Km for insulin degradation by isolated heart cells was estimated to be 1.75 x 10(-7)M. Receptor-mediated insulin degradation was studied by examination of the nature of radioactivity released by the cells after different times of association. After 5 min 83% of dissociating material consisted of intact insulin, whereas this fraction decreased to 50% under steady-state conditions. Treatment of cells with the lysosomotropic agent chloroquine (0.1 mM) significantly decreased the fraction that was eluted at the internal column volume. This study demonstrates that insulin degradation by the heart cell occurs by a receptor-independent and a receptor-dependent mechanism. The latter may involve internalization and a lysosomal pathway.