Repetitive stimulation of naïve T cells by immature splenic dendritic cells (DC) can result in the differentiation of T‐cell lines with regulatory properties. In the present study we identified a population of DC in the mucosae that exhibit the plasmacytoid phenotype, secrete interferon‐α (IFN‐α) following stimulation with oligodeoxynucleotides containing certain cytosine‐phosphate‐guanosine (CpG) motifs and can differentiate naïve T cells into cells that exhibit regulatory properties. Although these DC appear to be present in both spleen and mesenteric lymph nodes (MLN), only CpG‐matured DC from the MLN (but not the spleen) were able to differentiate naïve T cells into T regulatory 1‐like cells with regulatory properties. The activity of these DC failed to sustain robust T‐cell proliferation and thereby enhanced the suppressive efficacy of CD4⁺ CD25⁺ T regulatory cells. These DC are the major CD8α⁺ DC population in the Peyer's patches (PP). Given their significant presence in mucosal tissue, we propose that these DC may provide a mechanistic basis for the homeostatic regulation in the gut by eliciting regulatory cell suppressor function and poorly supporting T helper cell proliferation at a site of high antigenic stimulation like the intestine.