Epidermal growth factor (EGF) family members, including epiregulin (EP), play a fundamental role in epithelial tissues; however, their roles in immune responses and the physiological role of EP remain to be elucidated. The skin has a versatile system of immune surveillance. Biologically active IL-1␣ is released to extracellular space upon damage from keratinocytes and is a major player in skin inflammation. Here, we show that EP is expressed not only in keratinocytes but also in tissue-resident macrophages, and that EP-deficient (EP ؊/؊ ) mice develop chronic dermatitis. Wound healing in the skin in EP ؊/؊ mice was not impaired in vivo, nor was the growth rate of keratinocytes from EP ؊/؊ mice different from that of WT mice in vitro. Of interest is that in WT keratinocytes, both IL-1␣ and the secreted form of EP induced down-regulation of IL-18 mRNA expression, which overexpression in the epidermis was reported to induce skin inflammation in mice, whereas the downregulation of IL-18 induced by IL-1␣ was impaired in EP ؊/؊ keratinocytes. Although bone marrow transfer experiments indicated that EP deficiency in non-bone-marrow-derived cells is essential for the development of dermatitis, production of proinflammatory cytokines by EP ؊/؊ macrophages in response to Toll-like receptor agonists was much lower, compared with WT macrophages, whose dysfunction in EP ؊/؊ macrophages was not compensated by the addition of the secreted form of EP. These findings, taken together, suggested that EP plays a critical role in immune͞inflammatory-related responses of keratinocytes and macrophages at the barrier from the outside milieu and that the secreted and membranebound forms of EP have distinct functions.T he system of epidermal growth factor (EGF) superfamily (1) and EGF receptor (EGFR) family, including EGFR (ErbB1), ErbB2 (HER2), ErbB3 (HER3), and ErbB4 (HER4) (2), play a fundamental role in epithelial tissues. EGF family members, including EGF, transforming growth factor-␣, amphiregulin, heparinbinding EGF (HB-EGF), epiregulin (EP), and other members, regulate these receptors by inducing their homo-and͞or heterooligomerization (2, 3). EGF family members vary in their ability to activate distinct ErbB heterodimers, and this mechanism may, in part, account for the differences in their bioactivities (4-7).The membrane-anchored precursor of the EGF family is enzymatically processed externally to release a mature soluble form that acts as autocrine and͞or paracrine growth factor (8, 9), whereas some members of the EGF family act in the membrane-anchored form (8, 10). A bioactive transmembrane precursor, pro-HB-EGF, was suggested to induce growth inhibition or apoptosis rather than the proliferative response induced by soluble HB-EGF (10). EP (11-17) acts as an autocrine growth factor in normal human keratinocytes in vitro (15); however, its physiological role in vivo still remains to be elucidated.Keratinocytes in the epidermis play critical roles in the cutaneous immune-related responses (18) and contain biologically active ...