The tricyclic nucleotide triciribine phosphate (TCN-P) was synthesized as a water-soluble derivative of the tricyclic nucleoside TCN (LB Townsend et al, INSERM 81: 37, 1978). Growth of L1210 cells in vitro was inhibited equally by TCN and TCN-P. A requirement for adenosine kinase activity for activation of both TCN and TCN-P was established by the observation that growth inhibition by either compound was decreased 200-fold by the adenosine kinase inhibitor 5-iodotubercidin and greater than 5000-fold in L1210/T, an adenosine kinase-deficient subline. The TCN/TCN-P resistance of L1210/T cells was correlated with lack of formation of intracellular TCN-P from either TCN or TCN-P. Thus, it appeared that TCN-P was hydrolyzed to TCN and then rephosphorylated intracellularly. Both the horse serum-containing culture medium and the intact cells possessed nucleotide phosphatase activity, which may contribute to the hydrolysis of TCN-P to TCN in the L1210 cell cultures. The requirement for hydrolysis of TCN-P to TCN for formation of intracellular TCN-P from exogenous TCN-P was also shown directly by the observation that human erythrocytes, which lack ectophosphatases, readily formed intracellular TCN-P from TCN but not from TCN-P when incubated in buffer.