Optimum function of HLA-DR molecules in transgenic mice requires efficient interaction between the class II molecules on APCs and CD4 on T cells. Residues 110 and 139 of the second domain of class II molecules are considered to be critical for recognition of CD4. We generated an HLA-DR4beta(NT) transgene construct in which positions 110 and 139 were altered to resemble endogenous mouse H2 Abeta molecules. This construct was introduced into (B10 x SWR) embryos, and DR4beta(NT) transgenic mice were produced. The transgene was transferred into B10.RFB3 (Ebeta0 EalphaP) mice. The transgene-encoded DR4beta molecules paired with endogenous Ealpha chains to form stable DR4beta/Ealpha dimers expressed on the cell surface. The hybrid dimers showed similar Ag-binding specificity to HLA-DR4 molecules and positively selected CD4+ T cells in vivo. Immunization of HLA-DR4beta(NT) transgenic mice with DR4-restricted peptides induced T cell proliferation in vitro. While the purified T cells from DR4beta(NT) transgenic mice responded strongly to the HA(307-319) presented by M12C3 transfectants expressing altered DR4beta/Ealpha heterodimers, the response to the same peptides presented by transfectants expressing wild-type DR4beta/Ealpha molecules was substantially reduced. Taken together, these data confirmed in vitro studies on the importance of these residues in CD4-MHC class II interaction. The altered HLA-DR4beta transgenic mice were able to overcome the species barrier and generate efficient HLA-DR4-restricted CD4-specific immune responses. Thus, residues 110 and 139 were critical for the interaction of class II with CD4 T cells during thymic selection as well as peripheral immune responses.