The activation of protein kinase C by daphnane, ingenane and tigliane diterpenoid eaters. In this review, the mechanism of action of phorbol esters and related diterpenes is described. These compounds have been shown to stimulate a Ca2 + and phospholipid dependent protein kinase, termed kinase C. Phorbol esters activate protein kinase C by substituting for the natural effector, the second messenger, diacylglycerol. The various known protein substrates of this enzyme are described. Many of these substrates are involved in regulation of protein synthesis, DNA expression, cell transformation etc. This provides the explanation for the tumour promotion effects of some phorbol esters. Evidence for the biochemical mechanisms of action of phorbol esters that have other biological effects are also described. Recent evidence from our laboratories indicates that phorbol esters with limited biological effects, e.g. inflammatory but not tumour promoting, also act through this protein kinase. These phorbol esters appear to stimulate the phosphorylation of a different range of substrate proteins in vivo.