Activation of protein kinase C (PKC) in Rat-l fibroblasts leads to rapid phosphorylation of an 8O-kDa protein, a major substrate of PKC. Digitonin-permeabilized cells perfectly supported this early response. Introduction of a PKC pseudosubstrate peptide inhibited 85 kDa phosphorylation with an IC,, of 1 pM, while a control peptide had no effect. The results indicate that this semi-intact cell system can be used in combination with the inhibitory pseudosubstrate peptide to study the involvement of PKC in cellular processes.