The activity of rat liver plasma membrane-bound Na +-K + ATPase was modulated in vitro by epinephrine, glucagon and insulin through an action probably mediated by cyclic AMP. Epinephrine, glucagon and cyclic AMP inhibited the activity of this enzyme; insulin did not influence the baseline activity but prevented partially the effect of the former hormones. Rat liver plasma membranes contain protein kinase activity. In the absence of exogenous substrate, phosphorylation of membrane constituents occurred very rapidly and was inhibited by cyclic AMP, both in the presence and absence of Ca ++ ions. When an exogenous substrate (protamine) was added to the system, phosphorylation was linear with time, at least up to 15 min; the reaction was stimulated by cyclic AMP, and the effect of this compound was abolished when Ca ++ was added to the medium. Hydroxylamine removed about 35% of labeled phosphate incorporated—both in the presence and absence of cyclic AMP—in membrane preparations incubated in the absence of protamine, while it had no effect in its presence. These results suggest that, as a consequence of endogenous phosphorylation, part of labeled phosphate was incorporated in membranes through an acyl linkage. As Na +-K + ATPase catalyzes two main reaction steps, the first being represented by a phosphate group transfer from ATP to a free carboxylic radical belonging to enzyme protein, these results very probably indicate that the marked effect exerted by cyclic AMP on ATPase activity may be ascribed to the inhibition of the formation of such a linkage, due to the cyclic nucleotide itself. The second step of ATPase reaction was investigated by model reactions. The hydrolysis of p-nitrophenyl phosphate was not modified by cyclic AMP while that of acetyl phosphate was inhibited. As in the latter case, the reaction concerns the hydrolysis of an acyl phosphate group, it seems probable that also the second step of ATPase reaction is inhibited by cyclic AMP.