Thy-1 antigen is a well-characterized cell-surface glycoprotein known to be variably expressed in many different tissues, including lymphocytes, brain, and muscle. Its function remains unknown. In skeletal muscle, both in vivo and in vitro, the antigen has been reported on immature but not on adult tissue, and its disappearance corresponds roughly to the time of myoblast fusion. Using monoclonal H36 antibody to identify myoblasts unambiguously, we demonstrate here that Thy-1 is expressed only on a small (less than 1%) fraction of rat skeletal muscle myoblasts in heterogeneous primary cultures, but the number of myoblasts that express Thy-1 rises to a steady level of about 70% when fibroblasts are removed from secondary cultures. Restitution of fibroblasts or growth of purified myoblasts in medium conditioned by fibroblasts greatly suppresses this increase in myoblast Thy-1 expression. Thus an interaction between fibroblasts and myoblasts, mediated by a soluble nondialyzable molecule, modulates expression of Thy-1 on the myoblast outer membrane.