The intracellular fate of Chlamydia psittaci during infection of a monocytic cell line, THP1, was characterized. Cytochalasin D inhibited phagocytosis of latex beads but had no effect on infection by C. psittaci, and vacuoles expressed the transferrin receptor, suggesting accessibility to the endocytic pathway. Early Chlamydia-containing vacuoles expressed major histocompatibility complex (MHC) class I molecules, and most vacuoles fused with host cell lysosomes, since they expressed LAMP-1 and had acidic pHs. In cells prestimulated with gamma interferon, vacuoles also expressed MHC class II molecules, suggesting that the monocytes might effectively process Chlamydia-derived antigens for presentation by MHC class I and class II molecules.