Interferon gamma is distinguished from other types of interferons in its instability upon acid treatment, as demonstrated by a loss of antiviral activity. Acid unfolding and refolding experiments were performed with recombinant DNA derived human interferon gamma. When the protein was subjected to unfolding and refolding, the refolded protein showed two peaks (peaks I and II) in gel filtration which have been shown to differ in size, structure, and antiviral activity. When the smaller, peak II, form was unfolded by dialysis against 0.01 M HCl containing 0.1 M NaCl (pH 2) and refolded by dialysis against various solvents at neutral pH, it re-formed as peak II but also generated peak I, and the ratio of the two forms was dependent on protein concentration and solvent conditions. Higher protein concentrations and higher ionic strength led to a greater ratio of peak I to peak II. Phosphate buffers caused precipitation of peak I. Since peak II is 4-8 times more active than peak I in the antiviral bioassay, generation of peak I by acid treatment of peak II should lead to a decrease in antiviral activity.