We reported previously that hydrogen peroxide induces DNA synthesis in rat aortic smooth muscle (RASM) cells. In the present paper we studied the mechanism by which hydrogen peroxide induces c-jun mRNA, an early response gene whose activation is required for mitogen-stimulated cell growth. Hydrogen peroxide induced c-jun mRNA in growth-arrested RASM cells in a time dependent manner. This stimulation was significantly inhibited by mepacrine, a phospholipase A2 (PLA2) inhibitor. Arachidonic acid, a PLA2 product, also increased c-jun mRNA with a time course similar to that of hydrogen peroxide. The increases in c-jun mRNA induced by hydrogen peroxide and arachidonic acid were significantly reduced (55%) by down-regulation of protein kinase C with a phorbol ester. Furthermore, the effect of hydrogen peroxide on c-jun mRNA was also reduced by NDGA, an inhibitor of the lipoxygenase-cytochrome P450 mono-oxygenase system, suggesting that metabolism of arachidonic acid through this pathway is required for the induction of c-jun mRNA by oxidants. Both hydrogen peroxide and arachidonic acid significantly increased c-jun transcription as demonstrated by nuclear run-on assays. Together these observations suggest that: (1) the induction of c-jun mRNA by hydrogen peroxide is mediated by PLA2-dependent arachidonic acid release and metabolism through the lipoxygenase-cytochrome P450 mono-oxygenase system; (2) PKC appears to be involved in this signaling pathway and (3) the induction of c-jun mRNA by hydrogen peroxide in RASM cells is due to increased transcription.