The study examined the effect of dipeptidyl peptidase-4 (DPP-4) inhibitor, vildagliptin in cyclosporine (CsA)-induced hepatotoxicity. Rats were divided into 4 groups treated for 28 days: control (vehicle), vildagliptin (10 mg/kg, orally), CsA( 20 mg/kg, SC) and CsA-vildagliptin group. Liver function was assessed by measuring serum levels of Aspartate aminotransferase (AST), alanine aminotransferase (ALT), gamma glutamyltransferase (γGT), lactate dehydrogenase (LDH), albumin, and histopathological changes of liver were examined.Oxidative stress markers were evaluated. Assessment of nuclear factor-kappa B (NF-κB) activity in hepatic nuclear extract, serum DPP-4 and expression of Bax and Bcl2 using were also done.CsA-induced hepatotoxicity was evidenced by increase in serum levels of AST, ALT and γGT; a decrease in serum albumin and a significant alteration in hepatic architecture. Also, significant increase in thiobarbituricacid reactive substance (TBARS) and decrease in superoxide dismutase (SOD), catalase (CAT), glutathione peroxidase (GPx) and glutathione (GSH) levels, increased expression Bax proteins with deceased expression of Bcl2, increased hepatic activity of NF-κB, and serum DPP-4 level were observed upon CsA treatment. Vildagliptin significantly improved all altered parameters induced by CsA administration. Vildagliptin has the potential to protect the liver against CsA-induced hepatotoxicity by reducing oxidative stress, DPP-4 activity, apoptosis and inflammation.