The goal of allogeneic bone marrow transplantation (allo-BMT) is elimination of leukemia cells through the graft-versus-leukemia (GvL) activity of donor cells, while limiting graft-versus-host disease (GvHD). Immune checkpoint pathways regulate GvL and GvHD activities, but blocking antibodies or genetic inactivation of these pathways can cause lethal GVHD. Vasoactive intestinal peptide (VIP) is an immunosuppressive neuropeptide that regulates co-inhibitory pathways; its role in allo-BMT has not been studied. We found VIP transiently expressed in donor NK, NK-T, dendritic cells (DC) and T-cells after allo-transplant, as well as host leukocytes. A peptide antagonist of VIP-signaling (VIPhyb) increased T-cell proliferation in vitro and reduced IL10 expression in donor T-cells. Treatment of allo-BMT recipients with VIPhyb, or transplanting donor grafts lacking VIP (VIP-KO), activated donor T-cells in lymphoid organs, reduced T-cell homing to GvHD target organs, and enhanced GvL without increasing GvHD in multiple allo-BMT models. Genetic or ex vivo depletion of donor NK cells or CD8+ T-cells from allografts abrogated the VIPhyb-enhanced GvL activity. VIPhyb treatment led to down-regulation of PD-1 and PD-L1 expression on donor immune cells, increased effector molecule expression, and expanded oligoclonal CD8+ T-cells that protected secondary allo-transplant recipients from leukemia. Blocking VIP-signaling thus represents a novel pharmacological approach to separate GvL from GvHD and enhance adaptive T cell responses to leukemia-associated antigens in allo-BMT.