When adult human articular cartilage was maintained in organ culture in the presence of interleukin 1 beta, increased destruction of the extracellular matrix was observed, as judged by increased type II collagen degradation in situ determined immunohistochemically and the increased release of proteoglycan into the culture medium. Concomitant with these changes was the increased release of latent metalloproteinases into the culture medium. Culture of cartilage in the presence of a peptidylhydroxamate metalloproteinase inhibitor indicated a key role for the active forms of these enzymes in situ, since it produced a marked reduction in both proteoglycan release and collagen degradation. This compound had no detectable cytotoxic effects in organ culture and did not reduce the secretion of the metalloproteinases. The results of this study provide direct evidence that the latent metalloproteinase precursors, whose release is greatly stimulated by interleukin 1, are indeed activated to some degree and participate in cartilage matrix degradation.