The neuropeptide alpha-melanocyte stimulating hormone (α-MSH) has an important role in modulating immunity and homeostasis. The production of IFN-γby effector T cells is suppressed byα-MSH, while TGF-βproduction is promoted in the same cells. Suchα-MSH-treated T cells have immune regulatory activity and suppress hypersensitivity, autoimmune diseases, and graft rejection. Previous characterizations of theα-MSH-induced Treg cells showed that the cells areCD4+T cells expressing the same levels of CD25 as effector T cells. Therefore, we further analyzed theα-MSH-induced Treg cells for expression of effector and regulatory T-cell markers. Also, we examined the potential forα-MSH-induced Treg cells to be from the effector T-cell population. We found that theα-MSH-induced Treg cells areCD25+ CD4+T cells that share similar surface markers as effector T cells, except that they express on their surface LAP. Also, theα-MSH treatment augments FoxP3 message in the effector T cells, andα-MSH induction of regulatory activity was limited to the effectorCD25+T-cell population. Therefore,α-MSH converts effector T cells into Treg cells, which suppress immunity targeting specific antigens and tissues.