Interferon does not inactivate viruses or viral RNA. Virus growth is inhibited in interferon-treated cells, but apart from conferring resistance to virus growth, no other effect of interferon on cells has been definitely shown to take place. Interferon binds to cells even in the cold, but a period of incubation at 37 0 C is required for development of antiviral activity. Cytoplasmic uptake of interferon has not been unequivocally demonstrated. Studies with antimetabolites indicate that the antiviral action of interferon requires host RNA and protein synthesis. Experiments with 2-mercapto-l(f-4-pyridethyl) benzimidazole (MPB) suggest that an additional step is required between the binding and the synthesis of macromolecules. Interferon does not affect the adsorption, penetration, or uncoating of RNA or DNA viruses, but viral RNA synthesis is inhibited in cells infected with RNA viruses. The main action of interferon appears to be the inhibition of the translation of virus genetic information probably by inhibiting the initiation of virus protein synthesis.Interferon does not directly inactivate virus particles. It blocks an intracellular step involved in virus replication, probably virus-directed protein synthesis. Interferon-treated cells seem to develop this resistance to viruses through an active process involving cellular RNA and protein synthesis. The mechanism of action of interferon therefore involves the following two distinct problems: the changes which take place in an interferon-treated cell that lead to the development of resistance to virus growth, and how events in the virus growth cycle are modified by interferon treatment.The noteworthy properties of interferon should be accounted for by observations on its mechanism of action. These properties include inhibition of DNA and RNA virus replication, a remarkable selectivity of interferon action which results in inhibition of virus replication with as yet no detectable effect on cell metabolism, the variation in sensitivity of viruses to interferon, its species specificity, and its remarkable potency. What has been discovered so far about interferon action does provide data which help to explain some of these properties. At the end of this report I will try to show, at least provisionally, how current ideas on interferon action may explain some of its properties.