The human promyelocytic leukemia cell line HL-60 can be differentiated to cells resembling either neutrophils or mononuclear phagocytes by a diverse group of stimuli. However, the underlying mechanisms remain unknown. We report that 1-0-hexadecyl-2-acetyl-sn-glycerol inhibits the growth of HL-60 cells and induces differentiation to cells resembling mononuclear phagocytes. HL-60 cultures incubated for 6 days with 1-0-hexadecyl-2-acetyl-sn-glycerol (5 micrograms/ml) demonstrated a ten-fold increase in nonspecific esterase activity, and produced cells with morphological features similar to those of monocytes and macrophages. Higher concentrations of 1-0-hexadecyl-2-acetyl-sn-glycerol significantly inhibited the growth of HL-60 cells and resulted in the virtual absence of cells resembling the original HL-60 line. 1-0-Oleoyl-2-acetyl-rac-glycerol added under the same conditions did not induce cell differentiation or inhibit cell growth.