Helminths stimulate the secretion of T helper 2 (Th2) cytokines, like interleukin-4 (IL4) and suppress lethal graft-versus-host disease (GVHD) after bone marrow transplantation (BMT). This suppression depends on the production of immune-modulatory TGFβ and is associated with TGFβ-dependent in vivo expansion of Foxp3+ regulatory T cells (Treg). In vivo expansion of Tregs is under investigation for its potential as a therapy for GVHD. Nonetheless, the mechanism of induced and TGFβ-dependent, in vivo expansion of Tregs - in a Th2 polarized environment after helminth infection - is unknown. Here we show that helminth-induced IL4 production by host cells is critical to the induction and maintenance of TGFβ secretion, TGFβ-dependent expansion of Foxp3+ Tregs, and the suppression of GVHD. In mice with GVHD, the expanding donor Tregs express the Th2-driving transcription factor, GATA3, which is required for helminth-induced production IL4 and TGFβ. On the other hand, TGFβ is not necessary for GATA3 expression by Foxp3+ Tregs or by Foxp3− CD4 T cells. Various cell types of innate or adaptive immune compartments produce high quantities of IL4 after helminth infection. As a result, IL4-mediated suppression of GVHD does not require invariant NKT (iNKT) cells of the host - a cell type known to produce IL4 and suppress GVHD in other models. Thus, TGFβ generation – in a manner dependent on IL4 secretion by host cells and GATA3 expression - constitutes a critical effector arm of helminthic immune modulation that promotes the in vivo expansion of Tregs and suppresses GVHD.