Spontaneous network activity shapes emerging neuronal circuits during early brain development, however how neuromodulation influences this activity is not fully understood.Here, we report that the neuromodulator oxytocin powerfully shapes spontaneous activity patterns. In vivo, oxytocin strongly decreased the frequency and pairwise correlations of spontaneous activity events in visual cortex (V1), but not in somatosensory cortex (S1). This differential effect was a consequence of oxytocin only increasing inhibition in V1 and increasing both inhibition and excitation in S1. The increase in inhibition was mediated by the depolarization and increase in excitability of somatostatin + (SST) interneurons specifically.Accordingly, silencing SST + neurons pharmacogenetically fully blocked oxytocin's effect on inhibition in vitro as well its effect on spontaneous activity patterns in vivo. Thus, oxytocin decreases the excitatory/inhibitory ratio and modulates specific features of V1 spontaneous activity patterns that are crucial for refining developing synaptic connections and sensory processing later in life.We observed spontaneous network activity in V1, S1 and higher visual areas (Fig. 1a, b).Frequently, network events were confined to individual sensory regions, but sometimes occurred across the entire field of view. After topical application of oxytocin (1 µM) onto the cortical surface, the occurrence of network events was strongly decreased in V1, but only