Hydroxyl radical ('OH) formation by neutrophils in vitro requires exogenous iron. Two recent studies [Britigan, Rosen, Thompson, Chai & Cohen (1986) J. Biol. Chem. 261, 17026-17032;Winterbourn (1987) J. Clin. Invest. 78, 545-550] both reported that neutrophil degranulation could potentially inhibit the formation of OH, but differed in their conclusions as to the responsible factor, myeloperoxidase (MPO) or lactoferrin (LF). By using a previously developed spin-trapping system which allows specific on-line detection of superoxide anion (02-) and GOH production, the impact of MPO and LF release on neutrophil *OH production was compared. When iron-diethylenetriaminepenta-acetic acid-supplemented neutrophils were stimulated with phorbol myristate acetate or opsonized zymosan, *OH formation occurred, but terminated prematurely in spite of continued 02-generation. Inhibition of MPO by azide increased the magnitude, but not the duration, of OH formation. No azide effect was noted when MPO-deficient neutrophils were used. Anti-LF antibody increased both the magnitude and duration of 'OH generation. Pretreatment of neutrophils with cytochalasin B to prevent phagosome formation did not alter the relative impact of azide or anti-LF on neutrophil GOH production. An effect of azide or anti-LF on spin-trappedadduct stability was eliminated as a confounding factor. These data indicate that neutrophils possess two mechanisms for limiting GOH production. Implications for neutrophil-derived oxidant damage are discussed.