ABSTRACT Appendiceal mucinous neoplasms (AMN) are rare tumors of the gastrointestinal tract. They metastasize with widespread abdominal dissemination leading to pseudomyxoma peritonei (PMP) , a disease with poor prognosis. The cellular features of origin, differentiation and progression in AMN and PMP remain largely unknown. We characterized the distinct cell states of AMN and PMP using single-cell RNA-sequencing in 31 samples including AMNs, PMP metastases and matched normal tissues. We identified previously undescribed cellular features and heterogeneity in AMN and PMP. We discovered developmental cell states in tumor epithelial cells that ranged from progenitor phase to goblet cell differentiation, which was accompanied by elevated mucin gene expression. Metastatic PMP cells had a distinct cell state with increased mTOR and RAS signaling pathways and a series of upregulated cancer genes. We observed heterogeneity in a single PMP tumor as well as PMP metastases from the same patient. We validated our findings with immunohistochemistry, mass spectrometry on malignant ascites from PMP patients and gene expression data from an independent set of 63 PMPs.