We describe in detail the case of a male infant of a prostitute and IV drug abuser. The child presented at 9 mo of age with severely delayed growth (6.6 kg) and development, recurrent bacterial infections, lymphadenopathy, hepatosplenomegaly (8 cm), persistent oral candidiasis, and chronic pulmonary infiltrates. Immunologic studies showed polyclonal hypergammaglobulinemia and inverted T-cell T4/T8 ratios. Skin tests to Candida and phytohemagglutinin were positive. Lung biopsy showed peribronchiolar lymphocytic infiltrates. Axillary lymph nodes contained obliterated margins with increased plasmacytes centrally. Liver biopsy demonstrated mild ballooning of hepatocytes. Bone marrow biopsy revealed hypercellularity with increased plasmacytes. EB virus was repeatedly isolated from lymph node, bone marrow, and blood lymphocytes, although antibodies to EBV did not appear for another 4 mo. Sera from both mother and child did contain antibody to human T-cell leukemia virus. Multiple sera were negative for antibody to cytomegalovirus and herpes virus. These viruses failed repeatedly to grow from tissue specimens. Initially, the child's course was observed off all treatment. After 8 wks of slow deterioration, he became lethargic, tachypneic, and febrile without apparent source of infection. At that point, he was begun on oral prednisone (PDR), 2 mg/kg/day. After 1 wk, he became afebrile with normal respirations. His adenopathy dissolved along with resolution of interstitial infiltrates. After 4 wks of PDR therapy, weight was 8.7 kg, serum immunoglobulins were normal, and spleen tip was just palpable. After tapering of PDR, all indicators of disease reverted toward pre-PDR values. Reinstitution of PDR again changed all parameters in a beneficial manner. We conclude that PDR may be effective in treatment of the AIDS prodrome.