Two monoclonal antibodies, 1F5 and B1, directed against the CD20 (Bp35) antigen were found to have both stimulatory and inhibitory effects on B cells. 1F5, but not B1, induces small resting tonsillar B cells and prolymphocytic leukemia cells to enlarge, to rapidly increase their RNA synthesis, and to become responsive to growth factors present in mixed lymphocyte reaction supernatants. In addition, 1F5 induces a moderate increase in thymidine uptake, which is accompanied by enhanced viability of the cells, but not by any increase in total cell number or by any detectable entry into S phase or mitosis. Taken together, these observations suggest that 1F5 can initiate transition from the G0 to the G1 phase of the cell cycle. The fact that all the changes observed can be inhibited by low concentrations (I50 = 50 ng/ml) of cyclosporin A is further evidence that 1F5 is involved at an early stage of B cell activation. Because both 1F5 and B1 belong to the IgG2a subclass, differences in their activities are likely to reflect their different epitope specificities. Although only 1F5 had stimulatory activity, both 1F5 and B1 strongly inhibited B cell differentiation to immunoglobulin secretion. Possible explanations for the dual activities of 1F5 and implications for the role of the CD20 antigen in B cell differentiation are discussed.