Retinoblastomas appear to be derived from a multipotential stem cell of the retina, due to alterations of the Rb1 gene. These tumors arise only within a discrete time frame during childhood, prior to terminal differentiation of the retinal precursor cells. Treatment of retinoblastoma cells with certain agents can induce a partial differentiation of cell types resembling those of the mature retina, such as rod and cone photoreceptors, glia, conventional neurons and pigment epithelia. We have tested the effects of 8‐Cl‐cAMP, a synthetic analog of cAMP which preferentially binds to and activates the RII subunit of protein kinase A on the Y‐79 retinoblastoma cell line in vitro. Y‐79 cells treated with 8‐Cl‐cAMP produced short, branching processes and showed a substantial increase in staining for neuron‐specific enolase, a marker for conventional neuronal differentiation. In contrast, dibutyryl‐cAMP gives a strong increase in the glial marker glial acidic fibrillary protein. Y‐79 cell proliferation was strongly inhibited by 8‐Cl‐cAMP at concentrations as low as 5–25 μM. 8‐Cl‐cAMP significantly increased the rate of apoptosis of Y‐79 cells in a dose‐dependent manner. It also modulated expression of the RI regulatory subunit of intracellular cAMP‐dependent protein kinase A, which is produced in abnormal quantities by Y‐79 cells. A decrease in protein production was observed, with no clear effect on the RI subunit mRNA expression, suggesting that RI regulation occurs post‐transcriptionally. Int. J. Cancer 72:1088–1094, 1997. © 1997 Wiley‐Liss, Inc.