Although multinucleated giant cells (MGCs) are a known feature of granulomatous reactions, little is known about their destination and function. In this study human blood monocyte (BM)-derived giant cells were generated by lymphokine stimulation in vitro. Their immunophenotype and ultrastructural morphology resembled that of MGCs occurring in vivo. Mitotic activity within MGCs could not be established either in vitro or in vivo. Enzyme equipment of MGCs was elevated in comparison with monocyte-macrophages. In comparison with unfused monocyte-macrophages, MGCs did not reveal a higher level of interleukin-1 production or cytostatic activity. They showed, however, a 20-30-fold increase in the production of oxygen-free radicals in response to zymosan. Transcription of the proto-oncogene c-fms was enhanced in short-term cultivated BM and was rapidly down-regulated in MGCs after fusion had occurred. It is concluded that MGCs represent highly stimulated cells of monocyte-macrophage lineage at a terminal stage of maturation.