Human dendritic cells can be generated from bone marrow CD34+ progenitors in the presence of GM-CSF and TNF alpha. The addition of a factor like c-kit-ligand optimizes the expansion of dendritic cells, as well as the other myeloid progeny grown under the same conditions, and facilitates their identification and characterization. In contrast to cord blood, where dendritic cells account for the majority of the class II MHC positive myeloid progeny, bone marrow CD34(+)-derived dendritic cells are less frequent than macrophages. When mature macrophages are depleted from days 5-6 cultures, terminally differentiated CD14+ HLA-DR dendritic cells as well as non-monocyte/macrophage CD14+ HLA-DR+ cells can be distinguished. The latter are post-CFU, bipotential, intermediate precursors that can terminally differentiate into either dendritic cells or macrophages depending on subsequent cytokine exposure. Human CD34+ progenitors isolated from bone marrow, as well as cord and peripheral blood, include CFU-DC that give rise to pure dendritic cell colonies in the combined presence of GM-CSF and TNF alpha. The different sources of CD34+ progenitors are not equivalent, however, with respect to frequency of CFU-DC growth. Cord blood is relatively enriched for dendritic cell progenitors. The developmental relationship of CFU-DC and CFU-GM, to the early developing dendritic cells and the bipotential intermediates observed in suspension culture, is not yet established.