Abstract Granulocytic and monocytic myeloid-derived suppressor cells (G-MDSC and M-MDSC) are hallmarks of chronic inflammatory environments and major mediators of T cell suppression in cancer. We aimed to determine the mechanisms by which tumor-associated G-MDSC and M-MDSC suppress T cell proliferation. Our results suggest that MDSC isolated from lung carcinoma-bearing mice impaired the proliferation of activated T cells thorough an arrest in the G0-G1 phase of the cell cycle. This effect was not caused by a decreased T cell activation, as an increased expression of the early activation markers CD25 and CD69, and high production of IL-2 were detected in T cells co-cultured with MDSC. The anti-proliferative effect induced by MDSC was prevented after the addition of inhibitors of arginase and inducible nitric oxide synthase (iNOS). Interestingly, arginase I was exclusively expressed in G-MDSC, whereas iNOS was expressed mainly in M-MDSC. Additional results showed that G-MDSC produced higher levels of reactive oxygen species (ROS), whereas M-MDSC produced more peroxynitrites (PNT). Expression of gp91phox in G-MDSC regulated their production of ROS. In addition, M-MDSC-induced suppression was overcome using a PNT scavenger or an inhibitor for S-nitrosylation. These results suggest that sub-populations of MDSC suppress T cell proliferation through independent mechanisms. Targeting of these pathways may enable the design of new therapeutic approaches to reverse T cell tolerance in cancer.