The effect of anti-inflammatory drugs on cytokine production at local inflammatory sites was investigated in a carrageenin-induced rat pleurisy model. Exudate volume and leukocyte number in the pleural cavity at 3 h after the carrageenin injection were significantly reduced by the pretreatment with indomethacin or dexamethasone. Both drugs also reduced the prostaglandin E2 level in the exudate. However, production of tumor necrosis factor (TNF) and interleukin-1 in the pleural exudate was significantly enhanced by the pretreatment with indomethacin, whereas the interleukin-6 level was reduced. Pretreatment with dexamethasone markedly suppressed all these cytokine levels. When resident pleural cells were stimulated with lipopolysaccharide in vitro, the presence of exogenous prostaglandin E2 reduced the production of TNF and interleukin-1, while it increased that of interleukin-6 in a dose-dependent manner. These results suggest that prostaglandin E2 could be a regulating factor involved in cytokine production at the inflammatory site. Dexamethasone may express a direct suppressive action on cytokine production rather than an indirect regulatory action through prostaglandin E2 level.