The hallmarks of persistent viral infections are exhaustion of virus-specific T cells, elevated production of interleukin 10 (IL-10) and programmed death-1 (PD-1) the dominant negative regulators of the immune system and disruption of secondary lymphoid tissues. Within the first 12–24 hours after mice are infected with lymphocytic choriomeningitis virus (LCMV) clone 13, which is used as a model of persistent virus infection, we note generation of high titers of type 1 interferon. Blockade of type 1 interferon significantly lessens IL-10 and PD-1/PD-L1, allows normal secondary lymphoid architecture and re-establishes antiviral T-cell function, thus eradicating the virus and clearing the infection. Hence, type 1 interferon is a master reostat for establishing persistent viral infection.