Okadaic acid was found to block membrane fusion of chick embryonic myoblasts in culture. It also induced morphological change of the cells from bipolar to spherical shape. These effects were dose-dependent, and could be reversed upon removal of the drug from the culture medium. It showed, however, no effect on the induction of muscle specific proteins including tropomyosin and creatine kinase. When okadaic acid was treated to the cell lysates, the phosphorylation state of many proteins significantly increased. These results suggest that the inhibition of myoblast fusion by okadaic acid may be mediated by the increase in the phosphorylation of certain, unknown protein(s) that regulate the fusion process.