Results of recent studies support the clinical efficacy of providone-iodine as a new prophylactic regimen for ophthalmia neonatorum (Isenberg et al, N Engl J Med 1995; 332:562). The present study was performed to better define the antimicrobial action(s) of povidone-iodine, i.e., dosage, time, plasma membrane penetration and toxicity. A series of experiments were performed with an in vitro tissue culture cell system employing human conjuctival and rabbit corneal cells using S. aureus (SA), P. aeruginosa (PA) and N. gonorrhoeae (GC) as test organisms. Assays of extracellular bacterial adherence and intracellular penetration were performed using 1 to 6×106 organisms/ 8×104 tissue culture cells. Effects of 0.5%, 1%, 5%, 7.5% and 10% povidone-iodine on killing of both extracellular and intracellular organisms were measured at 5, 10, and 20 minutes using ciprofloxacin (0.3%) as a methodologic control. The antimicrobial% concentration of povidone-iodine needed for complete killing of extracellular organisms varied with each organism, i.e., GC 1%, SA 5%, PA 10%. Killing of intracellular organisms required greater concentrations of povidone-iodine and was related to the number of intracellular organisms, i.e., SA 4×104 @ 1% vs 1×105 @ 10%; PA 1×103 @ 1% vs 1×104 ± killing @ 10%. Maximal killing of each test organism occurred by 10 minutes and no toxicity was observed in tissue culture cells up to 60 minutes of povidone-iodine treatment. Ciprofloxacin showed less antimicrobial activity than povidone-iodine. Collectively, these results suggest that there is not only a concentration-dependent antimicrobial activity of povidone-iodine, with greatest killing at higher concentrations, but also an organism-specific sensitivity, i.e., GC > SA > PA. Moreover, the results of these studies support the distinct advantages of povidone-iodine prophylaxis for ophthalmia neonatorum over most antibiotics based upon its ability to kill intracellular organisms in addition to its stability, low cost, and its refractoriness to the development of resistance.