Although the relationship between hematopoietic stem cells and progenitor populations has been investigated extensively under steady-state conditions, the dynamic response of the hematopoietic compartment during acute infection is largely unknown. Here we show that after infection of mice with Plasmodium chabaudi, a c-Kit^hi progenitor subset positive for interleukin 7 receptor-α (IL-7Rα) emerged that had both lymphoid and myeloid potential in vitro. After being transferred into uninfected alymphoid or malaria-infected hosts, IL-7Rα⁺c-Kit^hi progenitors generated mainly myeloid cells that contributed to the clearance of infected erythrocytes in infected hosts. The generation of these infection-induced progenitors was critically dependent on interferon-γ (IFN-γ) signaling in hematopoietic progenitors. Thus, IFN-γ is a key modulator of hematopoiesis and innate and adaptive immunity during acute malaria infection.