Macrophage activation is thought to be mediated via a number of T-lymphocyte products, including gamma interferon (IFN-,y). However, our studies indicate that IFN--y acts as a regulator molecule rather than solely as an activator. This depends upon the status of the macrophage. IFN-,y treatment of resting macrophages and those activated or elicited by sodium caseinate, lipopolysaccaride, or Mycobacterium bovis BCG did not result in activation, as measured by hydrogen peroxide production; however, when thioglycolate was used as an eliciting agent, incubation with IFN--y resulted in a dramatic increase in hydrogen peroxide production compared with that by untreated controls.