Angiogenesis and inflammation are important therapeutic targets in non-small cell lung cancer (NSCLC). It is well known that proteolysis mediated by matrix metalloproteinases (MMPs) promotes angiogenesis and inflammation in the tumor microenvironment. Here, the effects of the MMP-inhibitor TIMP-2 on NSCLC inflammation and angiogenesis were evaluated in TIMP-2 deficient (timp2−/−) mice injected subcutaneously with Lewis-Lung carcinoma cells and compared with the effects on tumors in wild-type (WT) mice. TIMP-2-deficient mice demonstrated increased tumor growth, enhanced expression of angiogenic marker αv β3 in tumor and endothelial cells and significantly higher serum-VEGF-A levels. Tumor-bearing-timp2−/− mice showed a significant number of inflammatory cells in their tumors, upregulation of inflammation mediators, NF-κB and Annexin A1, as well as higher levels of serum IL-6. Phenotypic analysis revealed an increase in myeloid-derived-suppressor-cell (MDSC) cells (CD11b+, Gr-1+) that co-expressed VEGF-R1+ and elevated MMP activation present in tumors and spleens from timp2−/− mice. Furthermore, TIMP-2-deficient tumors up-regulated expression of the immunosuppressing genes controlling MDSC growth, IL-10, IL-13, IL-11, and CCL-5/RANTES, as well as decreased IFN-γ and increased CD40L. Moreover, forced TIMP-2 expression in human lung-adenocarcinoma A-549 resulted in a significant reduction of MDSCs recruited into tumors, as well as suppression of angiogenesis and tumor growth. The increase in MDSCs has been linked to cancer immunosuppression and angiogenesis. Therefore, this study supports TIMP-2 as a negative regulator of MDSCs with important implications for the immunotherapy and /or anti-angiogenic treatment of NSCLC.