Mice lacking suppressor of cytokine signaling-1 (SOCS1) develop a complex fatal neonatal disease. In this study, SOCS1(-/-) mice were shown to exhibit excessive responses typical of those induced by interferon gamma (IFN gamma), were hyperresponsive to viral infection, and yielded macrophages with an enhanced IFN gamma-dependent capacity to kill L. major parasites. The complex disease in SOCS1(-/-) mice was prevented by administration of anti-IFN gamma antibodies and did not occur in SOCS1(-/-) mice also lacking the IFN gamma gene. Although IFN gamma is essential for resistance to a variety of infections, the potential toxic action of IFN gamma, particularly in neonatal mice, appears to require regulation. Our data indicate that SOCS1 is a key modulator of IFN gamma action, allowing the protective effects of this cytokine to occur without the risk of associated pathological responses.