The proto-oncogene product pp60(c-src) is a tyrosine-specific kinase with a still unresolved cellular function. High levels of pp60(c-src) in neurons and the existence of a neuronal pp60(c-src) variant, pp60(c-srcN), suggest participation in the progress or maintenance of the differentiated phenotype of neurons. We have previously reported that phorbol esters, e.g., 12-O-tetradecanoylphorbol-13-acetate (TPA), stimulate human SH-SY5Y neuroblastoma cells to neuronal differentiation, as monitored by morphological, biochemical, and functional differentiation markers. In this report, we describe activation of the pp60(src) (pp60(c-src) and pp60(c-srcN)) kinase activity observed at 6 h after induction of SH-SY5Y cells with TPA. This phenomenon coincides in time with neurite outgrowth, formation of growth cone-like structures, and an increase of GAP43 mRNA expression, which are the earliest indications of neuronal differentiation in these cells. The highest specific src kinase activity (a three- to fourfold increase 4 days after induction) was noted in cells treated with 16 nM TPA; this concentration is optimal for development of the TPA-induced neuronal phenotype. During differentiation, there was no alteration in the 1:1 ratio of pp60(c-src) to pp60(c-srcN) found in untreated SH-SY5Y cells. V8 protease and trypsin phosphopeptide mapping of pp60(src) from in vivo 32P-labeled cells showed that the overall phosphorylation of pp60(src) was higher in differentiated than in untreated cells, mainly because of an intense serine 12 phosphorylation. Tyrosine 416 phosphorylation was not detectable in either cell type, and no change during differentiation in tyrosine 527 phosphorylation was observed.