Studies were initiated on retinyl acetate, a natural fatty acid retinol ester, to determine its effect on the clonal growth of normal human keratinocytes (NHK) and on the proliferation of HaCaT immortalized human keratinocytes. Both can be propagated in a chemically-defined serum-free medium. Retinyl acetate (RetAc) at physiological concentrations supports the autocrine production of an EGF-like growth factor that stimulates proliferation of both normal and HaCaT cells in serum-free media supplemented only with insulin. The possible cellular mechanism of autocrine stimulated proliferation induced by RetAc was elucidated by inhibiting clonal growth following treatment with a specific receptor tyrosine phosphokinase inhibitor, and by employing indirect immunofluorescence antibody detection microscopy to positively stain c-neu (erbB-2) cell membrane targets. C-neu antibody positively stains the cytoplasm of untreated keratinocytes, which is relocalized to focal adhesion cell surface receptors after alkaline phosphatase treatment, indicating a phosphorylationlabile receptor. By contrast, RetAc-treated keratinocytes stained positively for c-neu at cell surface focal adhesion sites that were labile to dephosphorylation by treatment with alkaline phosphatase. In addition, we investigated the effect of retinyl acetate on wound healing in an epidermal monolayer wound healing model. RetAc inhibited wound closure of damaged epidermal sheets in the wound healing zone at concentrations greater than those that stimulate keratinocyte proliferation. This result and other previous studies indicate RetAc stimulation of keratinocyte proliferation can be employed without EGF to produce a cultured stratified squamous keratinized epidermis suitable for wound healing applications.