The present studies have examined the effects of hexamethylene bisacetamide (HMBA) on the human U-937 monocytic cell line. HMBA treatment was associated with: (1) decreases in U-937 cell proliferation, (2) increases in nonspecific esterase activity and cell surface antigen expression consistent with monocytic differentiation, (3) decreases in c-myc gene expression, and (4) induction of tumor necrosis factor (TNF) transcripts. Treatment of U-937 cells with HMBA was also associated with increases in phospholipase A2 activity and increases in the release of arachidonic acid and its metabolites. Dexamethasone, an agent previously shown to inhibit monocytic differentiation, had no detectable effect on the down-regulation of c-myc, but blocked the induction of TNF expression. Taken together, the results demonstrate that HMBA induces monocytic differentiation of U-937 cells and that this effect is sensitive, in part, to dexamethasone.