The identification of reciprocal interactions between tumor-infiltrating immune cells and the microenviroment may help us understand mechanisms of tumor growth inhibition or progression. We have assessed the frequencies of tumor-infiltrating and circulating gammadelta T cells and regulatory T cells (Tregs) from 47 patients with squamous cell carcinoma (SCC), to determine if they correlated with progression or survival. Vdelta1T cells infiltrated SSC tissue to a greater extent than normal skin, but SCC patients and healthy subjects had similar amounts circulating. However,Vdelta2 T cells were present at higher frequencies in circulation than in the tissue of either cancer patients or healthy donors. Tregs were decreased in the peripheral blood of SCC patients, but were significantly increased in the tumor compartment of these patients. Tumor-infiltrating gammadelta T cells preferentially showed an effector memory phenotype and made either IL17 or IFNgamma depending on the tumor stage, while circulating gammadelta T cells of SCC patients preferentially made IFNgamma. Different cell types in the tumor microenvironment produced chemokines that could recruit circulating gammadelta T cells to the tumor site and other cytokines that could reprogram gammadelta T cells to produce IL17. These findings suggest the possibility that gammadelta T cells in SCC are recruited from the periphery and their features are then affected by the tumor microenvironment. Elevated frequencies of infiltrating Vdelta2 T cells and Treg cells differently correlated with early and advanced tumor stage, respectively. Our results provide insights into the functions of tumor-infiltrating gammadelta T cells and define potential tools for tumor immunotherapy.