A gene encoding a single-chain antibody which specifically binds the human epidermal growth factor (EGF) receptor has been constructed and expressed intracellularly. The single-chain antibody is derived from monoclonal antibody 225 which competes with EGF for binding to the extracellular domain of the receptor. The single-chain antibody was provided with a signal peptide to direct it to the secretory pathway and was expressed in EGF receptor transformed NIH/3T3 fibroblasts. EGF induced activation of its receptor was reduced in these cells. In addition, EGF-induced anchorage-independent growth of the cells was inhibited. The data suggest that the single-chain antibody functions in an autocrine fashion to inhibit the activity of the EGF receptor.