Epithelial-stromal interaction 1 (EPSTI1) was first discovered as a gene induced in breast cancer epithelial cells by co-cultured stromal fibroblasts. There are many reports on the role of Epsti1 in cancer malignancy. Epsti1 is now well known in regulating cancer. Recently, the role of Epsti1 in the immune response has been reported; these reports suggest the role of Epsti1 in immune function, immune privilege, and autoimmune diseases. Furthermore, they show that Epsti1 is expressed in various types of immune cells. In this study, we observed that Epsti1 is highly expressed in macrophages exposed to IFN gamma and lipopolysaccharide (LPS), which classically activates macrophages. Polarization of macrophage to classically activated (M1) or alternatively activated (M2) is important for mounting responses against various infections. The M1 and M2 types of macrophage have a distinct role in the immune system. However, the molecular mechanism of modulation of the macrophage type is not well defined. Our results showed that the M2 type macrophage phenotype is enhanced in Epsti1-deficient bone marrow-derived macrophages (BMDM). In addition, Epsti1 deficiency suppresses induction of pro-inflammatory genes in BMDMs via inhibition of Stat1 and p65 nuclear localization and phosphorylation. Surprisingly, Epsti1-/- mice show decreased numbers of M1 macrophages in the peritoneal cavity. These findings identify Epsti1 as a modulator of macrophage activation and polarization via the Stat1 and p65 pathways, and suggest a potentially important role of Epsti1 in immunotherapies against inflammatory diseases. (C) 2018 Elsevier Inc. All rights reserved.