The effects of corticotropin (ACTH) and tetradecanoyl phorbol acetate (TPA) on cholesterol ester hydrolase, intracellular cholesteryl ester concentration and steroid hormone formation were studied in mouse adrenal tumor cells (Y-1) in monolayer culture. Cholesterol ester hydrolase activity increased about 2-fold during 7 min incubation with ACTH, dibutyryl 3',5'-cyclic AMP (dbcAMP) and TPA at maximally effective concentrations; whereas, incubation with phorbol monoacetate had no effect. Long-term exposure to ACTH and dbcAMP markedly lowered intracellular cholesteryl [3H]-oleate concentration and highly increased steroid hormone output, while TPA treatment resulted in lowering cholesteryl [3H]-oleate content without affecting steroid hormone formation. Calcium activated phospholipid-dependent protein kinase C was detected in Y-1 cell cytosol. It is concluded that the mouse adrenal tumor cells in monolayer culture respond to ACTH in a fashion similar to normal adrenocortical cells; whereas, the response to the phorbol ester TPA (possibly mediated through protein kinase C) involves activation of cholesterol ester hydrolase and cholesteryl ester depletion, however, without affecting steroid hormone secretion.