In this paper, we initiate the study of endomorphisms and modular theory of the graph C*-algebras O θ of a 2-graph F + θ on a single vertex. We prove that there is a semigroup isomorphism between unital endomorphisms of O θ and its unitary pairs with a twisted property. We characterize when endomorphisms preserve the fixed point algebra F of the gauge automorphisms and its canonical masa D. Some other properties of endomorphisms are also investigated.As far as the modular theory of O θ is concerned, we show that the algebraic *-algebra generated by the generators of O θ with the inner product induced from a distinguished state ω is a modular Hilbert algebra. Consequently, we obtain that the von Neumann algebra π(O θ ) ′′ generated by the GNS representation of ω is an AFD factor of type III 1 , provided ln m ln n ∈ Q. Here m, n are the numbers of generators of F + θ of degree (1, 0) and (0, 1), respectively. This work is a continuation of [11,12] by Davidson-Power-Yang and [13] by Davidson-Yang.2000 Mathematics Subject Classification. 46L05, 46L37, 46L10, 46L40.