Both type I and type IV hypersensitivity reactions have been implicated in the pathogenesis of atopic dermatitis. Using monoclonal antibodies we have identified IgE on the surface of cutaneous dendritic cells in both lesional and nonlesional skin. Double immunofluorescence labeling demonstrates these cells to be antigen-presenting cells. Immunoglobulin E (IgE) was not identified on such cells either in atopic individuals with no history of dermatitis or in patients with a range of other dermatoses. Further studies are consistent with IgE being bound to the cell surface via an Fc-IgE receptor. We conclude that this finding is specific for atopic dermatitis and thus may provide a link between the two types of hypersensitivity reactions frequently observed.