Intratumoral immune activation can induce local and systemic anti-tumor immunity. Imiquimod is a cream-formulated, TLR-7 agonist that is FDA-approved for the treatment of non-melanoma skin cancers, but has limited activity against melanoma. We studied the anti-tumor activity and mechanism of action of a novel, injectable, tissue-retained TLR 7/8 agonist, 3M-052, which avoids systemic distribution. Intratumoral administration of 3M-052 generated systemic anti-tumor immunity, and suppressed both injected and distant, uninjected wild-type B16.F10 melanomas. Treated tumors showed increased level of CCL2 chemokines and infiltration of M1 phenotype-shifted macrophages, which could kill tumor cells directly through production of nitric oxide and CCL2, was essential for the anti-tumor activity of 3M-052. CD8+ T cells, B cells, Type I IFN, IFN-γ, and pDC were contributed to efficient tumor suppression whereas perforin, NK cells and CD4 T cells were not required. Finally, 3M-052 therapy potentiated checkpoint blockade therapy with anti-CTLA-4 and anti-PD-L1 antibodies, even when checkpoint blockade alone was ineffective. Our findings suggest that intratumoral treatment with 3M-052 is a promising approach for the treatment of cancer and establish a rational strategy and mechanistic understanding for combination therapy with intratumoral, tissue-retained TLR7/8 agonist and checkpoint blockade in metastatic cancer.