The microsomal fraction of M1 cells (an established cell line of myeloid leukemia) was capable of catalyzing acylation of sn-glycerol 3- phosphate by long-chain fatty acyl-CoA thioesters. The principal lipid product formed was identified as phosphatidic acid. Palmityl-CoA, stearyl-CoA, and oleyl-CoA were more effective acyl donors than linoleyl-CoA and arachidonyl-CoA. M1 cells and macrophages differentiated from them exhibited similar levels of sn-glycerol 3- phosphate-acylating activity, which were approximately one-half that in mouse liver and approximately four times that in peritoneal macrophages. The levels of acetyl-CoA carboxylase activity in M1 cells and macrophages differentiated from them were not significantly different from each other and were comparable to those in mouse liver, whereas no activity was detected in peritoneal macrophages. These results indicated that differentiation of the myeloid leukemic cells, which results in loss of leukemogenicity and mitotic activity, is not associated with changes in the activities of these lipogenic enzymes, although the cultured cells exhibited remarkably higher activities than freshly harvested peritoneal macrophages. Furthermore, the present study supports the view that the glycerophosphate pathway makes an essential contribution to the de novo synthesis of phospholipids in M1 cells, as well as in both types of macrophages.