Triggering of the cyclic AMP (cAMP) signal transduction pathway inhibits the interferon γ (IFN-γ) -mediated induction of class II major histocompatibility (MHC) genes. We have investigated the mechanism of the inhibition of IFN-γ induction of the murine Aα class II MHC gene by cAMP and E series prostaglandins (PGEs). 151 base pairs of the Aα promoter were sufficient to confer positive regulation by IFN-γ and negative regulation by cAMP which accurately mirrored the regulation of the endogenous Aα gene. cAMP also inhibited the IFN-γ activation of the Fcγ receptor I (FcγRI) gene promoter, an “early” promoter which is activated immediately after treatment of cells with IFN-γ. PGEs, which cause an elevation in intracellular cAMP, inhibited the induction of the Aα promoter, and inhibition was greater in the presence of tumor necrosis factor α (TNFα). A mutational analysis of the Aα promoter showed that all four conserved class II promoter elements, the S, X1, X2, and Y boxes, play a role in mediating Aα promoter activation by IFN-γ. Mutations in these elements did not diminish the cAMP inhibition of promoter activation by IFN-γ. Thus, conserved class II promoter sequences which mediate most known examples of positive and negative regulation, including cAMP inhibition of constitutive class II expression, do not mediate cAMP inhibition of IFN-γ activation of the Aα promoter. We suggest that this inhibition may be mediated by a novel class II promoter element or by disruption of an early step in the IFN-γ signal transduction pathway.