The immunoglobulin fraction prepared from the serum of a rabbit immunized with purified type II insulin-like growth factor (IGF) receptor from rat placenta was tested for its specificity in inhibiting receptor binding of 125I-IGF II and for its ability to modulate IGF II action on rat hepatoma H-35 cells. The specific binding of 125I-IGF II to plasma membrane preparations from several rat cell types and tissues was inhibited by the anti-IGF II receptor Ig. Affinity cross-linking of 125I-IGF II to the Mr = 250,000 type II IGF receptor structure in rat liver membranes was blocked by the anti-receptor Ig, while no effect on affinity labeling of insulin receptor with 125I-insulin or IGF I receptor with 125I-IGF I or 125I-IGF II was observed. The specific inhibition of ligand binding to the IGF II receptor by anti-receptor Ig was species-specific such that mouse receptor was less potently inhibited and human receptor was unaffected. Rat hepatoma H-35 cells contain insulin and IGF II receptor, but not IGF I receptor, and respond half-maximally to insulin at 10(-10) M and to IGF II at higher concentrations with increased cell proliferation (Massague, J., Blinderman, L.A., and Czech, M.P. (1982) J. Biol. Chem. 257, 13958-13963). Addition of anti-IGF II receptor Ig to intact H-35 cells inhibited the specific binding of 125I-IGF II to the cells by 70-90%, but had no detectable effect on 125I-insulin binding. Significantly, under identical conditions anti-IGF II receptor Ig was without effect on IGF II action on DNA synthesis at both submaximal and maximal concentrations of IGF II. This finding and the higher concentrations of IGF II required for growth promotion in comparison to insulin strongly suggest that the Mr = 250,000 receptor structure for IGF II is not involved in mediating this physiological response. Rather, at least in H-35 cells, the insulin receptor appears to mediate the effects of IGF II on cell growth. Consistent with this interpretation, anti-insulin receptor Ig but not anti-IGF II receptor Ig mimicked the ability of growth factors to stimulate DNA synthesis in H-35 cells. We conclude that the IGF II receptor may not play a role in transmembrane signaling, but rather serves some other physiological function.