Airway smooth muscle (ASM) cells can act as effector cells in the initiation and/or perpetuation of airway inflammation in asthma by producing various inflammatory chemokines or cytokines. Previous studies from our laboratory and others showed that the combination of tumor necrosis factor-␣ (TNF␣) and interferon-␥ (IFN␥) or endogenous IFN results in a synergistic induction of various pro-inflammatory genes, including CD38 and regulated upon activation normal T-cell expressed and secreted (RANTES), in ASM cells. In contrast to these studies, we found that IFN␥ (1000 U/ml) markedly inhibited TNF␣-induced expression of interleukin (IL)-6, IL-8, and eotaxin by 66.29 Ϯ 3.33, 43.86 Ϯ 7.11, and 63.25 Ϯ 6.46%, respectively. These genes were also found to be NF-B-dependent in that TNF␣-induced expression of IL-6, IL-8, and eotaxin was dose-dependently inhibited by the selective IKK inhibitor. Using a luciferase reporter construct containing B sites, we found that IFN␥ (10 -1000 U/ml) inhibits NF-B-dependent gene transcription in a dose-dependent manner. Moreover, IFN␥ failed to affect TNF␣-induced IK phosphorylation or IB degradation as well as nuclear NF-B/ DNA interaction. It is noteworthy that IFN␥ decreases TNF␣-induced histone acetyl transferase (HAT) and increases histone deacetylase (HDAC) activities. Finally, trichostatin A, an HDAC inhibitor, prevents IFN␥ inhibitory action on TNF␣-induced gene expression. Together, our data indicate that IFN␥ is a potent inhibitor of specific TNF␣-inducible inflammatory genes by acting on NF-B transactivation via the modulation of HDAC function.In recent years, there has been a veritable explosion of articles showing that tumor necrosis factor (TNF␣) represents a new promising target for the treatment of chronic inflammatory disorders such as asthma. Several reports used either pharmacological inhibitors or neutralizing antibodies (etanercept) both in animal models (Renzetti et al., 1996;Kim et al., 2006) and asthmatic subjects (Berry et al., 2006) to demonstrate that TNF␣ signaling is an important component in the pathogenesis of asthma. Among cytokines, TNF␣ is one of the most potent activators of NF-B, a ubiquitously expressed transcription factor that plays a leading role in the expression of a number of cellular genes involved in immune, inflammatory proapoptotic and antiapoptotic responses. In many cell types, NF-B complex exists in the cytoplasm as an inactive form through association with inhibitory proteins called inhibitors of NF-B (IBs). Treatment of cells with TNF␣ promotes a rapid activation of IKK of the IK complex, leading to IB phosphorylation and IB degradation, resulting in nuclear translocation of NF-B and in transcriptional machinery activation (Baldwin, 1996). More recent studies showed that NF-B-dependent gene expression needs corepressors and coactivators involved in modifying chromatin structure via histone acetyltransferase/histone deacetylase (HAT/HDAC) activities for full transcriptional