%0 Journal Article %T TIM-3+ CD8 T cells with a terminally exhausted phenotype retain functional capacity in hematological malignancies. %A Minnie SA %A Waltner OG %A Zhang P %A Takahashi S %A Nemychenkov NS %A Ensbey KS %A Schmidt CR %A Legg SRW %A Comstock M %A Boiko JR %A Nelson E %A Bhise SS %A Wilkens AB %A Koyama M %A Dhodapkar MV %A Chesi M %A Riddell SR %A Green DJ %A Spencer A %A Furlan SN %A Hill GR %J Sci Immunol %V 9 %N 94 %D 2024 Apr 19 %M 38640253 %F 30.63 %R 10.1126/sciimmunol.adg1094 %X Chronic antigen stimulation is thought to generate dysfunctional CD8 T cells. Here, we identify a CD8 T cell subset in the bone marrow tumor microenvironment that, despite an apparent terminally exhausted phenotype (TPHEX), expressed granzymes, perforin, and IFN-γ. Concurrent gene expression and DNA accessibility revealed that genes encoding these functional proteins correlated with BATF expression and motif accessibility. IFN-γ+ TPHEX effectively killed myeloma with comparable efficacy to transitory effectors, and disease progression correlated with numerical deficits in IFN-γ+ TPHEX. We also observed IFN-γ+ TPHEX within CD19-targeted chimeric antigen receptor T cells, which killed CD19+ leukemia cells. An IFN-γ+ TPHEX gene signature was recapitulated in TEX cells from human cancers, including myeloma and lymphoma. Here, we characterize a TEX subset in hematological malignancies that paradoxically retains function and is distinct from dysfunctional TEX found in chronic viral infections. Thus, IFN-γ+ TPHEX represent a potential target for immunotherapy of blood cancers.