Compositions and methods for reducing, or inhibiting inflammation in a subject in need thereof have been developed. Pharmaceutical compositions including one or more phosphatidylglycerol (PG), or functional derivatives thereof, in an effective amount to reduce or inhibit inflammation are provided. The compositions are particularly suited for treating inflammation associated with the skin such as psoriasis, or inflammation associated with the eye. Methods for treating, or preventing inflammation in an inflammatory condition, or an autoimmune disease using the composition, optionally in combination with one or more therapeutic, prophylactic or diagnostic agents, or procedures, are described.