Calcium is an important physiologic regulator of keratinocyte function that may regulate keratinocyte differentiation via modulation of protein kinase C (PKC) activity. PKC␣ and PKC␦ are two PKC isoforms that are expressed at high levels in keratinocytes. In the present study,weexaminetheeffectofPKC␦andPKC␣oncalcium-dependent keratinocyte differentiation as measured by effects on involucrin (hINV) gene expression. Our studies indicate that calcium increases hINV promoter activity and endogenous hINV gene expression. This response requires PKC␦, as evidenced by the observation that treatment with dominant-negative PKC␦ inhibits calcium-dependent hINV promoter activity, whereas wild type PKC␦ increases activity. PKC␣, in contrast, inhibits calcium-dependent hINV promoter activation, a finding that is consistent with the ability of dominantnegative PKC␣ and the PKC␣ inhibitor, Go6976, to increase hINV gene expression. The calcium-dependent regulatory response is mediated by an AP1 transcription factor-binding site located within the hINV promoter distal regulatory region that is also required for PKC␦-dependent regulation; moreover, both calcium and PKC␦ produce similar, but not identical, changes in AP1 factor expression. A key question is whether calcium directly influences PKC isoform function. Our studies show that calcium does not regulate PKC␣ or ␦ levels or cause a marked redistribution to membranes. However, tyrosine phosphorylation of PKC␦ is markedly increased following calcium treatment. These findings suggest that PKC␣ and PKC␦ are required for, and modulate, calcium-dependent keratinocyte differentiation in opposing directions.