Homogenates prepared from pheochromocytoma (PC12) cells that are extending nerve fibers in response to nerve growth factor (NGF) have an increased capacity to metabolize exogenous arachidonate compared with homogenates prepared from cells untreated with NGF. These changes are not a consequence of cell attachment, since they are also seen in NGF-treated PC12 cells grown in suspension and are not found in attached cells grown in the absence of NGF. This NGF-stimulated increase in arachidonate metabolic capacity occurs rapidly and before the extension of nerve fibers. In contrast to NGF, epidermal growth factor does not alter the metabolism of exogenous arachidonate by PC12 cells. Radioimmunoassay of medium from PC12 cultures indicates that intact cells produce and release increased amounts of prostaglandin (PGE) in response to NGF. Drugs that inhibit arachidonate liberation from membrane phospholipids (mepacrine or 4-bromphenacyl bromide) block NGF-stimulated nerve fiber growth by PC12 cells. Selective inhibitors of cyclooxygenase metabolism of arachidonate (indomethacin and aspirin) fail to block growth, but inhibitors of lipoxygenase metabolism (baicalein, BW755, and eicosatetraynoic acid) are potent blockers. In cultures of dorsal root ganglion neurons, inhibitors of arachidonate release (mepacrine, 4-bromphenacyl bromide) or its subsequent metabolism by lipoxygenases (nordihydroquaiaretic acid, eicosatetraynoic acid) also prevent the early morphological events of nerve fiber growth. Our data suggest that NGF rapidly and specifically increases the capacity of PC12 cells to synthesize arachidonate metabolites, and that arachidonate metabolism may be important in nerve fiber growth by both PC12 cells and dorsal root ganglion neurons.