Tumor necrosis factor (TNF)/inducible nitric oxide synthase (iNOS)-producing dendritic cells (Tip-DCs) have profound impacts on host immune responses during infections. The mechanisms regulating Tip-DC development remain largely unknown. Here, using a mouse model of infection with African trypanosomes, we show that a deficiency in interleukin-27 receptor (IL-27R) signaling results in escalated intrahepatic accumulation of Ly6C-positive (Ly6C1) monocytes and their differentiation into Tip-DCs. Blocking Tip-DC development significantly ameliorates liver injury and increases the survival of infected IL-27R2/2 mice. Mechanistically, Ly6C1 monocyte differentiation into pathogenic Tip-DCs in infected IL-27R2/2 mice is driven by a CD41 T cell-interferon gamma (IFN-g) axis via cell-intrinsic IFN-g signaling. In parallel, hyperactive IFN-g signaling induces cell death of Ly6C-negative (Ly6C2) monocytes in a cell-intrinsic manner, which in turn aggravates the development of pathogenic Tip-DCs due to the loss of the negative regulation of Ly6C2 monocytes on Ly6C1 monocyte differentiation into Tip-DCs. Thus, IL-27 inhibits the dual-track exacerbation of Tip-DC development induced by a CD41 T cell–IFN-g axis. We conclude that IL-27 negatively regulates Tip-DC development by preventing the cell-intrinsic effects of IFN-g and that the regulation involves CD41 T cells and Ly6C2 monocytes. Targeting IL-27 signaling may manipulate Tip-DC development for therapeutic intervention.