The fgr protooncogene is a member of the src family of protein tyrosine kinases. Recent studies have shown that normal myelomonocytic cells and tissue macrophages are the major sites of fgr mRNA expression. In the present study, we have identified the fgr protooncogene protein product in HL60 cells and have examined its expression as a function of HL60 cell maturation. Whether induced toward monocytic or granulocytic lineages, p55c-fgr accumulated in HL60 cells during maturation. In differentiated cells, the protein was active as a protein tyrosine kinase and was localized to peripheral cell membranes. Demonstration that a myristyl group was covalently bound to the protein probably accounted for its subcellular distribution. These findings establish developmental regulation of p55c-fgr in a lineage that represents its natural site of expression.