The airway inflammation in patients with COPD shows increased numbers of CD8+ T-cells.Hitherto, few studies have shown any functional data indicating a role for these cells in the pathogenesis of COPD. This paper focuses on a subset of CD8+ T-cells present in human lung, the intra epithelial lymphocytes expressing the integrin αEβ7, and their presence in bronchoalveolar lavage fluid from COPD patients. In this study we demonstrate that 64-89% of the CD8+ T-cells in bronchoalveolar lavage fluid from COPD patients are positive for CD103, the alpha-subunit of αEβ7. We also present an in vitro system in which it is possible to differentiate peripheral T-cells into a phenotype resembling the one found in bronchoalveolar lavage fluid, i.e. CD8+ CD103+. In this in vitro system we demonstrate that, in addition to TGF-β 1 , cell-to-cell interaction between the T-cell and an antigen-presenting cell, here represented by the monocyte, is crucial for a rapid, high and sustained expression of CD103. The signal provided by the monocytes, is shown to be mediated through LFA-1 on the T-cell. Furthermore, differentiation of CD8+ T-cells by TGF-β 1 and monocytes results in down regulation of INF-γ, TNF-α and GM-CSF production. IL-8 production is however retained in the αEβ7 expressing cells. We see this work as an initiation on the quest for a functional characterization of one the different types of CD8+ T cells present in COPD. In the longer perspective we hope this can lead to an increased understanding of how these cells can contribute to the disease pathology.