Professional antigen presenting cell (APCs) are important modulators of acute graft-versus-host disease (GVHD). Although dendritic cells (DCs) are most potent APC subset, other myeloid cells, especially macrophages (MFs) and neutrophils have recently been shown to play a role in the severity of GVHD. However, the critical molecular mechanisms that determine the functions of myeloid cells in GVHD are unclear. Signal transducer and activator of transcription 3 (STAT3) is a master transcription factor that plays a crucial role in regulating immunity. But its role in MF biology and in acute GVHD remains unknown. To determine the role of myeloid cell specific expression of STAT3 on the severity of acute GVHD, we utilized myeloid cell specific STAT3 deficient LysM-Cre/STAT3fl/− animals as recipients and donors in well-characterized experimental models of acute GVHD. We found that reduced expression of STAT3 in myeloid cells from the hosts, but not the donors, increased inflammation, donor T cell activation and exacerbated GVHD. Our data demonstrate that STAT3 in host myeloid cells, such as MFs, dampens acute GVHD.