Oxysterols, oxidized forms of cholesterol, have pleiotropic roles on the immune response aside from their involvement in lipid metabolism. The oxysterols 25-hydroxycholesterol (25-OHC) and 725-dihydroxycholesterol (725-OHC) regulate antiviral immunity and immune cell chemotaxis. However their physiological effects on adaptive immune response in particular on CD4+ T lymphocytes are largely unknown. Here we assessed oxysterol levels in subset of CD4+ T cells and demonstrated that 25-OHC and transcript levels of its synthesizing enzyme, cholesterol 25 hydroxylase (Ch25h), were specifically increased in IL-27-induced Type 1 regulatory T (TR1) cells. We further showed that 25-OHC acts as negative regulator of TR1 cells in particular of IL-10 secretion via LXR signaling. Not only do these findings unravel novel molecular mechanisms accounting for IL-27 signaling but they also highlight lipids as critical modulators of adaptive immunity