The majority of acute hepatitis C virus (HCV) infections progress to chronicity and progressive liver damage. Alpha interferon (IFN-␣) antiviral therapy achieves the highest rate of success when IFN-␣ is administered early during the acute phase, but the underlying mechanisms are unknown. We used a panel of major histocompatibility complex class I tetramers to monitor the phenotypic and functional signatures of HCVspecific T cells during acute HCV infection with different infection outcomes and during early IFN therapy. We demonstrate that spontaneous resolution correlates with the early development of polyfunctional (IFN-␥-and IL-2-producing and CD107a ؉ ) virus-specific CD8 ؉ T cells. These polyfunctional T cells are distinguished by the expression of CD127 and Bcl-2 and represent a transitional memory T-cell subset that exhibits the phenotypic and functional signatures of both central and effector memory T cells. In contrast, HCV-specific CD8 ؉ T cells in acute infections evolving to chronicity expressed low levels of CD127 and Bcl-2, exhibited diminished proliferation and cytokine production, and eventually disappeared from the periphery. Early therapeutic intervention with pegylated IFN-␣ rescued polyfunctional memory T cells expressing high levels of CD127 and Bcl-2. These cells were detectable for up to 1 year following discontinuation of therapy. Our results suggest that the polyfunctionality of HCV-specific T cells can be predictive of the outcome of acute HCV infection and that early therapeutic intervention can reconstitute the pool of long-lived polyfunctional memory T cells.Hepatitis C virus (HCV) infection resolves spontaneously during the acute phase in a minority of infected individuals while the majority develop persistent viremia and chronic hepatitis over a period of years or decades (28). Understanding the immune response leading to spontaneous resolution during acute HCV infection has been hampered by the asymptomatic nature of the disease. Studies in the chimpanzee model and high-risk populations like intravenous drug users (IDUs) or healthcare workers following HCV exposure have demonstrated the absolute requirement for the CD8 ϩ and CD4 ϩ HCV-specific T-cell responses to prevent viral persistence (reviewed in reference 12 and 50). A cellular immune response is induced in most infected individuals, resulting in spontaneous resolution or transient control of viremia. However, this response is not sustained in individuals who develop viral persistence. The inefficiency of this initial immune response and viral recurrence in individuals who progress to chronic infection are likely due to the loss of CD4 ϩ T-cell help (16,20,56,57) and the rapid emergence of viral escape mutants in targeted CD8 ϩ cytotoxic T lymphocyte epitopes (9). Individuals who spontaneously resolve HCV infection develop long-lived memory Tcell responses (54) that can be protective upon reexposure (51). In contrast, cellular immune responses are mostly undetectable in the blood of persistently infected individuals and are ...