The transferrin receptor is a target protein for phosphorylation by activated intracellular protein kinase C (May, W. S., Sahyoun, N., Jacobs, S., Wolf, M., and Cuatrecasas, P. (1985) J. Biol. Chem. 260, 9419-9426). Recently we reported that the potent tumor-promoting agent phorbol diester or a synthetic diacylglycerol could mediate rapid down-regulation of the surface transferrin receptor in association with receptor phosphorylation in HL60 leukemic cells and suggested that this phosphorylation may provide a signal for receptor internalization. In this communication we have tested experimentally the predictions generated by the hypothesis that receptor phosphorylation may play such a role in the intracellular cycling of the transferrin receptor. Results indicate that phorbol diester-stimulated phosphorylation occurs stoichiometrically only on the surface-oriented receptor and precedes internalization. Using a specific inhibitor of protein kinase C, it was found that both phorbol diester-mediated receptor phosphorylation and down-regulation could be antagonized. While the mechanism of internalization of the phosphorylated receptor is not clear, phorbol diester treatment significantly increases the rate constant for endocytosis from 0.183 to 0.462 min-1, while inhibiting only slightly the rate constant for exocytosis of the internalized receptor from 0.113 to 0.079 min-1. Thus, we conclude that phorbol diester treatment affects intracellular cycling of receptors and establishes a new steady state distribution of surface and intracellular receptors. These data support a role for receptor phosphorylation as a trigger for internalization primarily by stimulating the process of transferrin receptor endocytosis while affecting the subsequent exocytosis of the receptor cycling only slightly.