Abstract. The localization and intracellular transport of major histocompatibility complex (MHC) class II molecules and lysosomal hydrolases were studied in I-Cell Disease (ICD) B lymphoblasts, which possess a mannose 6-phosphate (Man-6-P)-independent targeting pathway for lysosomal enzymes. In the trans-Golgi network (TGN), MHC class II-invariant chain complexes colocalized with the lysosomal hydrolase cathepsin D in buds and vesicles that lacked markers of clathfin-coated vesicle-mediated transport. These vesicles fused with the endocytic pathway leading to the formation of "early" MHC class II-rich compartments (MIICs). Similar structures were observed in the TGN of normal [3 lymphoblasts although they were less abundant. Metabolic labeling and subcellular fractionation experiments indicated that newly synthesized cathepsin D and MHC class II-invariant chain complexes enter a non-clathfin-coated vesicular structure after their passage through the TGN and segregation from the secretory pathway. These vesicles were also devoid of the cation-dependent mannose 6-phosphate (Man-6-P) receptor, a marker of early and late endosomes. These findings suggest that in ICD B lymphoblasts the majority of MHC class II molecules are transported directly from the TGN to "early" MIICs and that acid hydrolases can be incorporated into MIICs simultaneously by a Man-6-P-independent process. M AJOR histocompatibility complex (MHC) 1 molecules mediate the presentation of antigenic peptides by antigen presenting cells (APCs) to T lymphocytes. Almost all cell types express MHC class I molecules, which display a variety of cytoplasmically derived peptides for presentation to CD8-positive T lymphocytes. MHC class II molecules are found on a restricted set of cell types such as B lymphocytes, macrophages, dendritic cells including epidermal Langerhans cells, and thymic epithelial cells. MHC class II molecules bind peptides generated by the proteolysis of exogenous antigens for presentation to CD4-positive T lymphocytes (reviewed in Cresswell, 1994). The MHC class II complex consists of ct and 13 chains that associate in the endoplasmic reticulum (ER) with the 31-33-kD invariant (I) chain (Marks et al., 1990). It is generally accepted that the association of I-chain with MHC class II prevents the binding of endoge-