Calcitonin, a peptide hormone active in calcium homeostasis, is used in the treatment of bone loss disorders because it inhibits osteoclast function. A human calcitonin receptor was cloned and expressed in baby hamster kidney cells. Three independent stable transfectants respond to calcitonin via increased intracellular calcium ([Ca2+]i) and cyclic adenosine 3',5'-monophosphate (cAMP). We made the interesting observation that these cells also respond to millimolar increases in extracellular calcium via a rapid and sustained elevation in [Ca2+]i, whereas three calcitonin receptor-negative baby hamster kidney cell lines, two of which express recombinant receptors related to the calcitonin receptor, show no sensitivity to changes in extracellular calcium. The increase of [Ca2+]i in response to both calcitonin and extracellular calcium is a function of the average number of calcitonin receptors per cell. These studies suggest a dual role for the calcitonin receptor as a hormone receptor and an extracellular calcium sensor.