Cell surface glycoprotein Thy-1 functions as a transformation suppressor in v-ras-transformed NIH/3T3 cells [Sugimoto et al., (1991) Cancer Res. 51, 99-104.]. In order to understand the mechanism of action of Thy-1, we examined the effect of Thy-1 expression on mitogen-induced Ca2+ oscillation which was correlated with v-ras-transformation [Fu et al., (1991) FEBS Lett. 281, 263-266.]. Forced expression of Thy-1 in v-ras-transformed cells inhibited mitogen-induced Ca2+ oscillation. Although v-Ras-free, Thy-1-positive NIH/3T3 cells (major population) did not show Ca2+ oscillation, whereas in Thy-1-negative NIH/3T3 cells (less than 1% of the population) Ca2+ oscillation was observed. Finally, replacement of the carboxyl-half of Thy-1 with that of CD4 abolished the inhibitory effect of Thy-1. These results suggest that Thy-1 directly or indirectly participates in the negative regulation of Ca2+ response by inhibiting Ca2+ oscillation.