In order to gain insight into the biological function of a PKC iso‐enzyme, the protein kinase Cμ, we analyzed the expression pattern of this protein in mouse epidermis and keratinocytes in culture. Daily analysis of neonatal mouse epidermis immediately after birth showed a time‐dependent reduction in the PKCμ content. Expression of the proliferating‐cell nuclear antigen (PCNA), indicative of the proliferative state of cells, was reduced synchronously with PKCμ as the hyperplastic state of the neonatal tissue declined. In epidermal mouse keratinocytes, fractionated according to their maturation state, PKCμ expression was restricted to PCNA‐positive basal‐cell fractions. In primary cultures of those cells, growth arrest and induction of terminal differentiation by Ca2+ resulted in strongly reduced PKCμ expression, concomitantly with the loss of PCNA expression. Treatment of PMK‐R1 keratinocytes with 100 nM of the mitogen 12‐O‐tetradecanoylphorbol‐13‐acetate (TPA) resulted in activation of PKCμ, reflected by translocation from the cytosolic to the particulate fraction and by shifts in electrophoretic mobility. DNA synthesis was significantly inhibited by the PKCμ inhibitor Goedecke 6976, while Goedecke 6983 did not inhibit PKCμ. Carcinomas generated according to the 2‐stage carcinogenesis protocol in mouse skin consistently exhibited high levels of PKCμ. These data correlate PKCμ expression with the proliferative state of murine keratinocytes and point to a role of PKCμ in growth stimulation. A correlation between PKCμ expression and enhanced cell proliferation was also observed for NIH3T3 fibroblasts transfected with and over‐expressing human PKCμ. Int. J. Cancer 80:98–103, 1999. © 1999 Wiley‐Liss, Inc.