The double‐stranded RNA (dsRNA)‐activated protein kinase PKR is an interferon (IFN)‐induced enzyme that controls protein synthesis through phosphorylation of eukaryotic initiation factor 2α (eIF‐2α). PKR also regulates signals initiated by diverse stimuli, including dsRNA, IFN‐γ, tumor necrosis factor‐α, interleukin‐1 and lipopolysaccharide, to different transcription factors, resulting in pro‐inflammatory gene expression. Stat3 plays an essential role in promoting cell survival and proliferation by different growth factors, including platelet‐derived growth factor (PDGF). Here we show that PKR physically interacts with Stat3 and is required for PDGF‐induced phosphorylation of Stat3 at Tyr705 and Ser727, resulting in DNA binding and transcriptional activation. PKR‐mediated phosphorylation of Stat3 on Ser727 is indirect and channeled through Erks. Although PKR is pre‐associated with the PDGF β‐receptor, treatment with PDGF only modestly activates PKR. However, the induction of c‐fos by PDGF is defective in PKR‐null cells. Taken together, these results establish PKR as an upstream regulator of activation of Stat3 and as a common mediator of both growth‐promoting and growth‐inhibitory signals.