The Australian brushtail possums are highly susceptible to Mycobacterium bovis and are the principal wildlife reservoir of M. bovis in New Zealand. To better understand the disease process in these animals, brushtail possums were infected by the aerosol route with a virulent strain of M. bovis, and immune parameters measured. M. bovis replicated actively in the lungs of infected animals. Animals began developing macroscopic lung lesions at 4 and 5 weeks following infection, with some lesions appearing in the livers and spleens. Infection determined the emergence of blood lymphocytes which proliferated in response to bovine purified protein derivative from M. bovis (PPD-b) at 3, 4 and 5 weeks. The response to a mitogen (Concanavalin A) waned progressively with time. Infection was associated with a modest increase in the numbers of free lung cells. Nitrite was detectable in the lavage fluids of infected animals at 3 weeks postinfection, but not at 4 and 5 weeks. Macrophage activation in the lungs was evident as alveolar macrophages produced more oxidants, significant levels of nitric oxide (NO), as well as tumor necrosis factor alpha (TNF-alpha) bioactivity at 3 weeks postinfection. However, macrophages from infected animals lost the ability to generate nitrite- and TNF-alpha generation was depressed at 4 and 5 weeks postinfection, the time at which macroscopic lesions in the lungs became apparent. Alveolar macrophages from animals at 3 weeks postinfection blocked the replication of M. bovis in part via a NO-dependent mechanism, and were more refractory for M. bovis growth than cells from naïve animals to bacterial replication. Alveolar macrophages from animals at 4 and 5 weeks postinfection allowed substantial replication of M. bovis, and no NO-dependent bacteriostatic activity was apparent. Introduction of autologous lymphocytes from the blood of infected animals in co-cultures rendered infected macrophages more resistant to M. bovis replication. We conclude that M. bovis infection in brushtail possums is associated with a transient activation of alveolar macrophages, although in vitro exposure to sensitized T cells can enhance this profile.