Abstract-It is still controversial whether intrinsic interferon (IFN)-␥ promotes or attenuates vascular remodeling in hyperproliferative vascular disorders, such as neointima formation after balloon injury. Thus, we investigated whether inhibition of intrinsic IFN-␥ function prevents neointima formation. For this purpose, naked DNA plasmid encoding a soluble mutant of IFN-␥ receptor ␣-subunit (sIFN␥R; an IFN-␥ inhibitory protein) or mock plasmid was injected into the thigh muscle of male Wistar rats 2 days before balloon injury (day Ϫ2). sIFN␥R gene transfer significantly elevated serum levels of sIFN␥R protein for 2 weeks. In mock-treated rats, balloon injury induced smooth muscle cell proliferation in the neointima with a peak at day 7 and produced thick neointima at day 14. sIFN␥R treatment reduced the number of proliferating intimal smooth muscle cells by 50% at day 7 and attenuated neointima formation with a 45% reduction of the intima/media area ratio at day 14. In mock-treated rats, at day 7, balloon injury induced phosphorylation of signal transducer and activator of transcription-1 and upregulations of IFN regulatory factor-1 (a transcription factor mediating IFN-␥ signal). Balloon injury also upregulated the key molecules of neointima formation, such as intercellular adhesion molecule-1 and platelet-derived growth factor -receptor. These changes were suppressed by sIFN␥R treatment. In conclusion, it is suggested that intrinsic IFN-␥ promotes neointima formation probably through IFN regulatory factor-1/intercellular adhesion molecule-1-mediated and platelet-derived growth factor-mediated mechanisms. Thus, inhibition of IFN-␥ signaling may be a new therapeutic target for prevention of neointima formation of hyperproliferative vascular disorders.