Summary.We assessed the functional properties and the kinetic status in vitro, and the engraftment potential in vivo of human haematopoietic stem cells according to the expression of CD34 antigen. Lin ) CD34 ) and Lin ) CD34 + cells were isolated from granulocyte colony-stimulating factor-primed peripheral blood (PB) cells of healthy donors. The CD34 ) cell fraction did not contain either clonogenic cells in semisolid culture or long-term culture initiating cells (LTC-IC). However, stroma-dependent liquid cultures and cytokines induced CD34 expression on a minority of stem cells, acquisition of clonogenic capacity and generation of LTC-IC. Significantly higher percentages of quiescent G 0 cells and lower percentages of cycling G 1 cells were found in Lin ) CD34 ) cells when compared with Lin ) CD34 + cells. Kinetic quiescence of Lin ) CD34 ) cells was associated with a significantly higher expression of the negative regulators of the cell cycle, p27 Kip1 and p21 cip1/waf1 . Cytokine-mediated induction of CD34, in vitro, resulted in cycling of stem cells and downregulation of p27. There was a higher rate of human long-term engraftment in immunocompromised non-obese diabetic (NOD)/recombination activating gene 1 null and NOD/severe combined immunodeficient-b 2 microglobulin null mice injected with CD34 + cells. Thus, our study indicated that CD34 expression on human PB stem cells was associated with haematopoietic activity, cell-cycle recruitment and downregulation of p27 Kip1 in vitro and higher engraftment capacity in vivo.