The capacity of antigen presenting dendritic cells (DC) to function in both tolerance and immunity is now well documented. The function and characteristics of different DC subsets are reviewed here and their capacity to activate T cells under different conditions of maturation and activation is discussed. The immunogenic potential of exosomes produced by DC is also considered in light of evidence that the capacity of exosomes to activate T cells for tolerance or immunity appears to mirror that of the parent DC. A model is proposed whereby exosomes produced by immature DC can function to maintain peripheral tolerance, while exosomes produced by more mature DC can stimulate effector T cells.