We previously demonstrated that thyroid capsular inflammation induced by continuous treatment with the antithyroidal agent sulfadimethoxine is associated with development of invasive follicular cell carcinomas in rats initiated with N-bis(2-hydroxypropyl)nitrosamine (DHPN). The inflammatory changes are characterized by large numbers of macrophages and lymphocytes as well as fibroblasts and we hypothesized that it might be enhanced by interplay between macrophages and T cells. To clarify this hypothesis, a comparative study was conducted between athymic nude (rnu/rnu) rats and euthymic (rnu/+) littermates initiated with DHPN (2800 mg/kg, s.c.) followed by sulfadimethoxine treatment in drinking water (0.1%) for 10 weeks. In rnu/+rats, marked capsular thickening with inflammation was induced along with invasive follicular cell carcinomas (2.8 ± ± ± ± 1.3/rat). In rnu/rnu rats, limited fibrous capsular thickening was noted with or without minimal inflammatory change, and the multiplicity of invasive carcinomas was significantly lower (1.1 ± ± ± ± 1.0/ rat, P < 0. I t is generally accepted that inflammation is an immune reaction not only to exogenous but also to mutated or overexpressed endogenous proteins. It has both advantages and disadvantages for humans and animals. For example, the immune system recognizes and eliminates tumor cells because of their expression of tumor-associated antigens (e.g. HER-2/neu in breast carcinomas)(1) but chronic inflammation resulting in enhanced epithelial cell turn over may be a major contributor to carcinogenesis.(2) Furthermore, neoplastic transformation and progression is associated with the release of highly reactive oxygen and nitrogen species (RONS) from inflammatory cells.(3) Hydrogen peroxide, nitric oxide (NO) or other RONS can damage DNA via several mechanisms, and NO is recognized to stimulate proinflammatory cytokines as well as cyclooxygense-2 (COX-2) activity, leading to tumor growth via enhanced prostaglandin production and inactivation of p53-mediated caspase.(4) Increased expression of inducible nitric oxide synthase (iNOS) or COX-2 in tumor epithelial cells as well as stromal inflammatory cells has been demonstrated in human gastric, (5) colon, (6,7) breast (8) and hepatic (9) tumors, and their contribution to tumor development and progression is now generally accepted. Overexpression of iNOS and COX-2 has also been reported in azoxymethane-induced colon, (10) 7,12-dimethylbenz(a)anthracene-induced mammary,choline-deficient, l-amino acid-defined diet-caused hepatocellular,and indium-phosphate-induced lung (13) carcinogenesis in rats. Monocytes, macrophages and neutrophils produce iNOS in inflammatory states (14) in response to cytokines such as interferon (IFN)-γ.(15) Th1 and CD8 + T cells are major sources of IFN-γ during immunoresponses, (16) and activated macrophages also secrete cytokines like interleukin (IL)-12, which in turn stimulate Th1-type T cells to secrete IFN-γ and IL-2, activating other resting macrophages in an upward spiral. (17,18) We previously...