Recombinant gamma interferon induces class II antigen (HLA-DR) biosynthesis and expression on normal cultured human keratinocytes. HLA-DR expression was not induced on keratinocytes by recombinant alpha or beta interferons in a similar dose range nor by Con A or PHA. HLA-DR (L243) expression, as determined by FACS analysis, was detected as early as 1-2 days after addition of r-IFN-gamma to the cultures and was maximal after 4-8 days. Keratinocytes were analyzed for expression of another class II antigen, HLA-DC (Leu-10). Little or no expression of Leu-10 (DC) was detectable on these cells although Fc receptors for the IgG1 isotype were increased. These data indicate a unique role for gamma interferon in the differential regulation of keratinocyte class II antigen biosynthesis and expression. Induction of HLA-DR on keratinocytes may be functionally important in expanding the number of antigen presenting cells in the skin for the induction of an immune response and/or targeting these keratinocytes for cytolysis.