A B S T R A CT Thyroxine (T4) and triiodothyronine (T3) are rapidly degraded by a purified preparation of myeloperoxidase (MPO) and H202 with the formation of iodide and material which remains at the origin on paper chromatography. Deiodination by MPO and H202 occurs more readily at pH 7.0 than at pH 5.0 in contrast to iodination by this system which is known to occur more readily at pH 5.0 than at pH 7.0. Degradation is inhibited by azide, cyanide, ascorbic acid, and propylthiouracil. Methimazole stimulates deiodination by MI PO and H202 but inhibits this reaction when MIPO is replaced by lactoperoxidase or horseradish peroxidase.Intact human leukocytes, in the resting state, degrade T4 and T3 slowly; degradation, however, is increased markedly during phagocytosis of preopsonized particles. Serum inhibits this reaction. T3 can be detected as a minor product of T4 degradation. Proteolytic digestion of the reaction products increases the recovery of monoiodotyrosine. The fixation of iodine in the cytoplasm of leukocytes which contain ingested bacteria was detected radioautographically. Chronic granulomatous disease leukocytes, which are deficient in H202 formation, degrade T4 and T3 poorly during phagocytosis. MPO-deficient leukocytes degrade the thyroid hormones at a slower rate than do normal leukocytes although considerable degradation is still observed. Azide, cyanide, ascorbic acid, and propylthiouracil which inhibit certain peroxidasecatalyzed reactions inhibit degradation by normal leukocytes; however, inhibition is incomplete. Formation of iodinated origin material is inhibited to a greater degree by azide, cyanide, and propylthiouracil than is deiodination. Methimazole inhibits the formation of iodinated origin material by both normal and MPO-deficient leukoThese studies were presented in part at the 64th These data suggest that both MPO-dependent and MPO-independent systems are involved in the degradation of T4 and T3 by phagocytosing leukocytes. The role of leukocytic degradation of T4 and T3 in thyroid hormone economy and in leukocytic microbicidal activity is considered.