Human leukemic HL-60 cells are differentiated into granulocytic cells by retinoic acid, and this differentiation is preceded by the induction of an ecto-enzyme of NAD glycohydrolase (NADase). The NADase specifically induced by retinoic acid appeared to be encoded by human leukocyte cell surface antigen CD38 as follows. 1) There was an early expression of CD38 mRNA, together with the induction of the NADase activity, in the retinoic acid-treated HL-60 cells. 2) The time course of the expression of CD38 antigen on the cell surface was well correlated with that of the induction of NADase activity. 3) The NADase activity solubilized from the differentiated HL-60 cell membrane could be immunoprecipitated with an anti-CD38 monoclonal antibody. 4) Introduction of the CD38 cDNA into Escherichia coli cells resulted in the expression of an NADase, the activity of which was inhibited by dithiothreitol. The NADase activity in the differentiated cells was also inhibited by the reducing reagent. These results clearly indicated that the dithiothreitol-sensitive NADase activity induced by retinoic acid in HL-60 cells is attributed to the molecule of human leukocyte cell surface antigen CD38, which contains cysteine-rich cytoplasmic domain within its molecule.