We examined the interdependence of calpain and protein kinase C (PKC) activities on neurite outgrowth in SH‐SY‐5Y human neuroblastoma cells. SH‐SY‐5Y cells elaborated neurites when deprived of serum or after a specific thrombin inhibitor, hirudin, was added to serum‐containing medium. The extent of neurite outgrowth under these conditions was enhanced by treatment of cells with the cell‐permeant cysteine protease inhibitors N‐acetyl‐leucyl‐leucyl‐norleucinal (“C1”) and calpeptin or by the phospholipid‐mediated intracellular delivery of either a recombinant peptide corresponding to a conserved inhibitory sequence of human calpastatin or a neutralizing anti‐calpain antisera. Calpain inhibition in intact cells was confirmed by immunoblot analysis showing inhibition of calpain autolysis and reduced proteolysis of the known calpain substrates fodrin and microtubule‐associated protein 1. The above inhibitory peptides and antiserum did not induce neurites in medium containing serum but lacking hirudin, suggesting that increased surface protein adhesiveness is a prerequisite for enhancement of neurite outgrowth by calpain inhibition. Treatment of cells with the PKC inhibitor H7, staurosporine, or sphingosine induced neurite outgrowth independently of serum concentration. Because calpain is thought to regulate PKC activity, we examined this potential interrelationship during neurite outgrowth. Simultaneous treatment with calpain and PKC inhibitors did not produce additive or synergistic effects on neurite outgrowth. PKC activation by 2‐O‐tetradecanoylphorbol 13‐acetate (TPA) prevented and reversed both neurite initiation by serum deprivation and its enhancement by calpain inhibitors. Treatment of cells with the calpain inhibitor C1 retarded PKC down‐regulation following TPA treatment. Cell‐free analyses demonstrated the relative specificity of various protease and kinase inhibitors for calpain and PKC and confirmed the ability of millimolar calcium‐requiring calpain to cleave the SH‐SY‐5Y PKC regulatory subunit from the catalytic subunit, yielding a free catalytic subunit (protein kinase M). These findings suggest that the influence of PKC on neurite outgrowth is downstream from that of surface adhesiveness and calpain activity.