Class I and class II molecules encoded by genes within the major histo
compatibility complex play a central role in regulation of immune resp
onses through their ability to bind and display small peptides derived
from foreign antigens. Within the last few years, considerable progre
ss has been made in understanding the structures of class T and class
II MHC molecules, as well as the features of the peptides that are the
ir principal ligands. This review summarizes this information and desc
ribes how it accounts for both the specificity and degeneracy of pepti
de binding. It also considers how the origin and structural features o
f peptides that have been isolated from MHC molecules, so-called ''nat
urally processed'' peptides, have provided insight into the pathways t
hrough which the peptides are produced. Finally, the use of new struct
ural information and techniques for peptide characterization for the i
dentification of peptides that comprise epitopes for individual antige
n-specific T cells an considered.