Immune evasion and T cell tolerance induction have been associated both with malignant disease and chronic infection. In recent years, increasing evidence has been accumulated that antigen-presenting cells such as dendritic cells (DC) play a major role in immune regulation. They are not only involved in the induction of immunity but also can inhibit immune responses. Interesting parallels for major molecular mechanisms involved in turning DC from stimulatory to regulatory cells have been uncovered between malignant disease and chronic infection. Apparently, not only inhibitory cytokines such as IL-10 seem to play a role, but also metabolic mechanisms dysregulating tryptophan metabolism, thereby, leading to inhibition of T cells and pathogens. We focus here on recent findings establishing the tryptophan catabolizing enzyme indoleamine-pyrrole 2,3 dioxygenase (IDO) as a central feature of DC with regulatory function both in cancer and chronic infection. Induction of enzymatically active IDO can be triggered by various soluble and membrane-bound factors, and in general, require interferon (IFN) signaling. In addition, based on the most recently established link between tumor necrosis factor alpha (TNFalpha), prostaglandin E2 and IDO, a new model of regulation of IDO in context of cancer and infection is proposed. In light of the increasing use of anti-TNFalpha drugs, these findings are also of great interest to the clinician scientist.