Background: IFN-␥ inhibits tumor cell growth by activating STAT1. Results: Wedelolactone specifically inhibited TCPTP, the major phosphatase of STAT1, prolonged IFN-␥-induced STAT1 phosphorylation, and enhanced the antitumor effect of IFN-␥. Conclusion: Wedelolactone enhanced the antitumor effect of IFN-␥ by inhibiting TCPTP-mediated STAT1 dephosphorylation. Significance: We identified a novel antitumor drug candidate, a new target, and a new mechanism to develop novel anticancer therapeutics.