Background/Aims: Vaccine therapy in which vaccine containing hepatitis B surface antigen (HBsAg) is injected has shown therapeutic activity (vaccine therapy) in some human and murine chronic hepatitis B virus (HBV)-carriers. Using HBV-transgenic mice (HBV-Tg), an animal model of the HBV-carrier state, the mechanism underlying the antiviral and immune modulatory capacity of vaccine therapy was studied. Methods: Placebo-controlled, double-blind trials of vaccine therapy were conducted in HBV-Tg; some HBV-Tg responded to the therapy, whereas others were non-responders. The titers of HBV-markers, the functions of lymphocytes and antigen presenting dendritic cells were compared between vaccine responders and vaccine non-responders. Results: The prevaccinated titers of HBsAg, hepatitis B e antigen (HBeAg), HBV DNA and the responses of lymphocytes to polyclonal mitogens were almost unchanged between responders and non-responders, but the levels of proliferation of HBsAg-specific lymphocytes from non-responders was significantly lower than responders ( p<0.05). The capacity of dendritic cells to induce proliferation of T cells and production of antibody to HBsAg (anti-HBs) was significantly higher in responders compared with non-responders ( p<0.05). Injection with HBsAg resulted in upregulation of MHC class II and CD86 antigens ( p<0.05) on dendritic cells and increased production of IL-12, IL-2 and TNF-α in cultures ( p<0.05) in vaccine responders but not in non-responders. Conclusions: The activation of dendritic cells following injection with vaccine containing HBsAg is the vital factor underlying the therapeuticpotentiality of vaccine therapy in HBV carriers.