Objective. Recent clinical trials suggest that etanercept is ineffective in controlling Sjögren's syndrome (SS). To address the hypothesis that tumor necrosis factor blockade can result in increased levels of interferon-␣ (IFN␣) and BAFF, we quantified those mediators in plasma from etanercept-and placebotreated SS patients.Methods. We studied plasma samples from 20 patients with SS treated with etanercept (25 mg twice weekly) or placebo in a 12-week, randomized, doubleblind clinical trial. In addition, we studied plasma samples from 29 healthy controls. IFN␣ activity was determined by reporter cell assay, and BAFF levels were determined by enzyme-linked immunosorbent assay.Results. Baseline IFN␣ plasma activity and BAFF levels were increased in SS patients compared with healthy controls (mean ؎ SD IFN␣ plasma activity score 4.43 ؎ 2.60 versus 2.08 ؎ 0.91; P < 0.0001) (mean ؎ SD BAFF level 0.83 ؎ 0.27 ng/ml versus 0.60 ؎ 0.15 ng/ml; P ؍ 0.008). A significant increase in IFN␣ activity was detected after 12 weeks of treatment in the etanercept group, but not in the placebo group (P ؍ 0.04 and P ؍ 0.58, respectively). Furthermore, a statistically significant increase in BAFF levels was noted in patients receiving etanercept, but not in those receiving placebo (P ؍ 0.01 and P ؍ 0.56, respectively). In vitro culture of control peripheral blood mononuclear cells with etanercept resulted in a dose-dependent increase in the expression of IFN␣ and the IFN␣-inducible genes IFNinduced protein with tetratricopeptide repeats 1 and BAFF.Conclusion. IFN␣ activity and BAFF levels are elevated in the plasma of patients with SS compared with healthy controls. Etanercept treatment exacerbates IFN␣ and BAFF overexpression, providing a possible explanation for the lack of efficacy of this agent in SS.