The development of Fc and C3 receptor function was evaluated during differentiation of human peripheral blood monocytes into macrophages in an in vitro culture system. At the time of isolation, monocytes formed rosettes with C3-coated erythrocytes (EIgMC) but did nt internalize them, whereas IgG-coated erythrocytes (EIgG) were both bound and ingested. During the first 24 hr in culture, IgG-mediated phagocytosis and C3-mediated rosette formation declined. After 7 days of in vitro differentiation, monocyte-derived macrophages were capable of ingesting 2 to 4 times as many EIgG as uncultured monocytes. In addition, macrophages demonstrated a new function--the ability to ingest C3-coated erythrocytes, as well as to efficiently bind them. The time course of the reappearance of receptor functions varied between different individuals, but by day 7, the activity of Fc and C3 receptors was vigorous for all individuals tested. Monocytes underwent differentiation whether they were cultured on glass coverslips or on a plastic surface. However, macrophages demonstrated C3-mediated ingestion earlier when cultured on plastic. Culturing monocytes on the different surfaces did not affect the time course of the reappearance of Fc receptor function, but did have a small effect on the magnitude of the response. These experiments demonstrate for the first time, that a defined population of human phagocytic cells can acquire the ability to mediate ingestion through their C3 receptors.