Memory-phenotype (MP) CD4 T lymphocytes develop from naïve cells via self-recognition at homeostasis. While previous studies defined MP cells as a heterogeneous population that comprises T helper 1 (T1)/17-like subsets, functional significance of the T-bet Rorγt subpopulation remains unknown. Here we show that MP lymphocytes as a whole population can differentiate into T1/17/regulatory T (T) cells to mediate mild and persistent inflammation in lymphopenic environments, whereas naïve cells exhibit strong, T1-dominated responses. Moreover, we demonstrate that MP lymphocytes comprise not only T1/17-differentiated subsets but a polyclonal, transcriptomically immature "undifferentiated" subpopulation at homeostasis. Furthermore, our data argue that while the T-bet Rorγt MP subset is terminally T1-differentiated, its undifferentiated counterpart retains the capacity to rapidly proliferate to differentiate into T1/17/T cells, with the latter response tonically constrained by preexisting T cells. Together, our results identify undifferentiated MP CD4 T lymphocytes as a unique precursor that has a diverse differentiation potential to generate T1/17/T cells to contribute to pathogenesis of inflammation.