Much data in the literature suggest a role for protein kinase C (PKC) in regulating keratinocyte proliferation and differentiation. Nevertheless, the exact role of this family of isoenzymes is unclear, since PKC agonists (e.g., phorbol esters) are known to stimulate expression of both proliferative and differentiative markers in keratinocytes. Similarly, PKC inhibitors have been demonstrated both to inhibit [2-[1-3(aminopropyl)indol-3-yl]-3(1-methyl-1H-indol-3-yl)maleimide, acetate (Ro 31-7549) and 3- [1-[3-(amidinothio)propyl-1H-indol-3-(1-methyl-1H-indol-3yl) maleimide (Ro 31-8220)] and to induce (staurosporine) keratinocyte differentiation. In this study, we examined the role of the PKC inhibitor, Gö decke 6976 (Gö 6976) [12-(2-cyanoethyl)-6,7,12,13-tetrahydro-13-methyl-5-oxo-5H-indolo(2,3-a)pyrrolo (3,4-c)-carbazole], on keratinocyte proliferation, as measured by DNA synthesis, and differentiation, as monitored by transglutaminase activity. This compound is reported to be selective for the conventional PKC isoforms, of which keratinocytes express only PKC␣, and for protein kinase D (PKD; also known as PKC). We report that Gö 6976 stimulated transglutaminase activity. Consistent with this effect, Gö 6976 also potently inhibited [3 H]thymidine incorporation (a half-maximal inhibitory concentration of ϳ0.1 M). In addition, Gö 6976 (1 M) was able to enhance the stimulation of transglutaminase activity by 1,25-dihydroxyvitamin D 3 but had no effect on D 3 -induced expression of keratin-1. Conversely, Gö 6983 [2-[1-(3-dimethylaminopropy)-5-methoxyindol-3-yl]-3-(1H-indol-3-yl)maleimide], a similar compound that also selectively inhibits conventional PKC␣, but not PKD, had little or no effect on DNA synthesis or transglutaminase activity (up to 1 M). The effect of Gö 6976 was not due to cytotoxicity as its effect on thymidine incorporation was largely reversible, and its stimulation of transglutaminase activity could be inhibited by another general PKC inhibitor, bisindolylmaleimide I. Therefore, our results suggest a proproliferative, antidifferentiative role for PKD in epidermal maturation.The epidermis is composed primarily of epidermal keratinocytes, which continuously proliferate and differentiate to maintain this important tissue. Keratinocyte differentiation is characterized by a spatially and temporally regulated program of gene and protein expression, which ultimately results in terminal differentiation and cell death. This program of differentiation is essential for the function of the epidermis as a barrier to water loss, microbial invasion, and mechanical stress. Despite the importance of keratinocyte differentiation to epidermal structure, the signaling pathways that regulate this process are not well understood. Numerous data in the literature indicate a role for PKC in keratinocyte differentiation; however, the exact role of this enzyme is at present unclear (reviewed in Bollag and Bollag, 2001). Thus, PKC-activating phorbol esters elicit events associated paradoxically both with differentiati...