HLA-DM (DM) plays a critical role in antigen presentation through major his
tocompatibility complex (MHC) class II molecules. DM functions as a molecul
ar chaperone by keeping class II molecules competent for antigenic peptide
loading and serves as an editor by favoring presentation of high-stability
peptides. Until now, DM has been thought to exert these activities only in
late endosomal/lysosomal compartments of antigen-presenting cells. Here we
show that a subset of DM resides at the cell surface of B cells and immatur
e dendritic cells. Surface DM engages in complexes with putatively empty cl
ass II molecules and controls presentation of those antigens that rely on l
oading on the cell surface or in early endosomal recycling compartments. Fo
r example, epitopes derived from myelin basic protein that are implicated i
n the autoimmune disease multiple sclerosis are down-modulated by DM, but a
re presented in the absence of DM. Thus, this novel concept of functional D
M on the surface may be relevant to both protective immune responses and au
toimmunity.