The role of somatomedin-C (Sm-C) in the acquisition of granulosa cell progesterone biosynthesis was investigated in vitro in a primary culture of rat granulosa cells cultured for 72 h under serum-free conditions. Basal progesterone accumulation was negligible and remained unaffected by treatment with highly purified Sm-C (50 ng/ml). Whereas treatment with FSH (20 ng/ml) produced a 9-fold increase in progesterone accumulation, the concurrent application of increasing concentrations (0.3-50 ng/ml) of Sm-C brought about dose-dependent increments in the FSH-stimulated accumulation of progesterone with a median effective dose of 4.0 +/- (SE) 0.3 ng/ml and a maximal response 9.6-fold greater than that induced by FSH alone. A monoclonal antibody raised against Sm-C (sm 1.2) produced complete immunoneutralization of the synergistic interaction between FSH and Sm-C, supporting the specificity of the Sm-C effect and arguing against the possible involvement of copurified contaminant(s) in the preparation used. Treatment of granulosa cells with the highest dose of Sm-C tested (50 ng/ml), in the absence or presence of FSH, did not result in significant alterations in cell number, DNA content, plating efficiency or viability. Taken together, our findings indicate that Sm-C is capable of synergizing with FSH in the induction of granulosa cell progesterone biosynthesis. Significantly, this ability of Sm-C to augment differentiated phenotypic expression of the developing granulosa cell is distinct from its well established growth-promoting property and may thus represent a novel biologic effect of this polypeptide.