TNF-alpha inhibits collagen synthesis and at high concentrations stimulates collagenase synthesis in fibroblasts. As fluid from chronic inflammatory lesions contains significant levels of TNF-alpha, it is puzzling why these lesions exhibit dense accumulations of disorganized collagen. In this study we determined if low concentrations of TNF-alpha may inhibit the collagen phagocytic pathway in fibroblasts and thereby contribute to fibrosis. Collagen phagocytosis was measured by flow cytometric assessment of internalized, fluorescent collagen beads. TNF-alpha induced a dose-dependent reduction (optimal dose: 40% at 10 ng/ml; p<0.001) in the proportion of phagocytic cells and a twofold reduction of the number of internalized beads per cell but did not alter the total number of vital cells. TNF-alpha reduced by twofold the degradation of collagen films. Fluid flow shear-force assays demonstrated that TNF-alpha caused a 72% reduction (p < 0.05) in strong binding of collagen-coated beads to cells indicating that TNF-alpha may inactivate receptors and inhibit collagen binding. Furthermore, TNF-alpha reduced cell contact area with collagen substrates by threefold and inhibited reattachment of trypsinized cells by fourfold. Although levels of collagen receptors were increased by TNF-alpha (53% increase in alpha(2) (beta)1 integrin; p<0.001, 20% increase in alpha(1)beta(1)), the receptors were inactivated by the cytokine. The reduced phagocytic activity of TNF-alpha-treated cells was restored to control levels by treatment with the integrin-activating Abs A16G6 and JBS2. TNF-alpha inhibited focal adhesion formation and phosphotyrosine staining in focal adhesions. These effects were replicated by the tyrosine kinase inhibitor genistein, which also inhibited phagocytosis. Collectively, these data indicate that TNF-alpha inhibits adherence and phagocytosis of collagen. These effects are mediated by a reduction in the strength of alpha(2)beta(1) integrin binding to collagen, possibly through tyrosine kinases in focal adhesions. At low concentrations of TNF-alpha (10 ng/ml) that are found in the periphery of chronic inflammatory lesions, we suggest that inhibition of the collagen phagocytic pathway may contribute to fibrosis.