Butyramide and monobutyrin were chosen for study as neutral compounds that might exhibit some of the growth inhibitory and differentiating effects of butyrate. Inhibitory effects on DNA synthesis in hepatoma cells and on cellular proliferation in mouse erythroleukemia cells were observed. Induction of differentiation by butyramide and monobutyrin was seen in mouse erythroleukemia cells as monitored by increased synthesis of hemoglobin and H1 zero histone. Butyramide and monobutyrin were less effective inducers of hemoglobin synthesis than butyrate but their neutral character may offer an advantage in the induction of tumor cell differentiation.