In situ hybridization studies have shown that at early but not late stages of gestation, human placental stromal cells, many of which are macrophages (Hofbauer cells), contain HLA-G message. In this study, the HLA-G protein was identified in the macrophage-like stromal cells by immunohistochemistry using the anti-HLA-G mAb, 87G. Expression of the HLA-G gene was then analyzed in macrophage cell lines (U937, HL-60, THP-1) and blood monocytes. HLA-G mRNA identified by using reverse transcriptase PCR was consistent with production of a transcript containing intron 4, which codes for a soluble form of HLA-G. Low levels of HLA-G mRNA were identified in mononuclear phagocytes by Northern blot hybridization, and little if any HLA-G Ag was detectable. By contrast, essentially all of the cells displayed high levels of HLA-B/C H chains detected by the mAb, 4E, and B2m. Treatment of macrophage cell lines and monocytes with IFN-gamma increased steady-state levels of HLA-G mRNA, stimulated higher levels of cell surface and intracellular HLA-G Ag in a dose-dependent manner, and increased the proportions of HLA-G relative to HLA-B/C. INF-alpha and IFN-beta enhanced steady-state levels of HLA-G mRNA and in some lines modestly increased the numbers of weakly positive cells but were poor inducers of cell-surface and intracellular HLA-G and did not increase HLA-G relative to HLA-B/C. Thus, mononuclear phagocytes express low levels of HLA-G mRNA and protein, and IFN-gamma selectively enhances expression of this HLA class Ib gene relative to HLA class Ia, which could influence the repertoire of peptides presented during embryogenesis as well as during inflammatory situations in adults. Soluble HLA-G might influence both fetal and maternal immune responses.