Upon viral infection, the major defense mounted by the host immune system is activation of the interferon (IFN)-mediated antiviral pathway. In order to complete their life cycles, viruses must modulate the host IFN-mediated immune response. The K3 and K5 proteins of a human tumor-inducing herpesvirus, Kaposi's sarcoma-associated herpesvirus (KSHV), have been shown to downregulate the surface expression of host immune modulatory receptors by increasing their endocytosis rates, which leads to suppression of cellmediated immunity. In this report, we demonstrate that K3 and K5 both specifically target gamma interferon receptor 1 (IFN-␥R1) and induce its ubiquitination, endocytosis, and degradation, resulting in downregulation of IFN-␥R1 surface expression and, thereby, inhibition of IFN-␥ action. Mutational analysis indicated that K5 appeared to downregulate IFN-␥R1 more strongly than K3 and that the amino-terminal ring finger motif and the carboxyl-terminal region of K5 were necessary for IFN-␥R1 downregulation. These results suggest that KSHV K3 and K5 suppress both cytokine-mediated and cell-mediated immunity, which ensures efficient viral avoidance of host immune controls.Interferons (IFNs) are a family of cytokines that exhibit such diverse biological effects as the inhibition of cell growth and protection against viral infection. There are two major subtypes of IFNs: type I IFNs (alpha IFN [IFN-␣] and IFN-) and type II IFN (IFN-␥). Both subtypes elicit similar yet distinct biological activities. IFN-␣/ are vital signals for the host immune system to initiate an antiviral response, provide the first front line of innate immune defense against virus infection, and additionally modulate adaptive immune response (29). IFN-␥, which is produced by activated T cells and natural killer cells, is primarily involved in the regulation of specific immune responses, immune surveillance, and tumor suppression (1, 4). IFNs carry out their responses through activation of the Janus kinase-signal transducer and activator of transcription (JAK-STAT) signal pathway. Activation of the STAT pathway leads to the formation of two major complexes: gamma-activated factor (GAF), which is composed of STAT1 dimers and induced by IFN-␥, and IFN-stimulated gene factor 3, which consists of STAT1 (p84/91), STAT2 (p113), and a DNA binding protein, p48 (IRF9), and is mainly induced by IFN-␣/. IRF9 and GAF complexes translocate to the nucleus, bind to the interferon-stimulated response element (ISRE) and the gamma-activated sequence (GAS), respectively, and modulate gene transcription (12,13,15,47,48).Most viruses have evolved immune evasion strategies to protect themselves against host IFN responses, elaborating viral proteins as a counterdefense against the host IFN defenses. Recently, the IFN antagonist strategies used by many viruses have been revealed; these strategies include blocking IFN signaling by downregulation of JAK-STAT signal molecule basal levels, suppression of particular molecule modifications, and prevention of molecule tra...