Endogenous cannabinoids (endocannabinoids) are small molecules biosynthesized from membrane glycerophospholipid. Anandamide (AEA) is an endogenous intestinal cannabinoid that controls appetite and energy balance by engagement of the enteric nervous system through cannabinoid receptors. Here, we uncover a role for AEA and its receptor, cannabinoid receptor 2 (CB2), in the regulation of immune tolerance in the gut and the pancreas. This work demonstrates a major immunological role for an endocannabinoid. The pungent molecule capsaicin (CP) has a similar effect as AEA; however, CP acts by engagement of the vanilloid receptor TRPV1, causing local production of AEA, which acts through CB2. We show that the engagement of the cannabinoid/vanilloid receptors augments the number and immune suppressive function of the regulatory CX3CR1 hi macrophages (Mϕ), which express the highest levels of such receptors among the gut immune cells. Additionally, TRPV1−/− or CB2 −/− mice have fewer CX3CR1 hi Mϕ in the gut. Treatment of mice with CP also leads to differentiation of a regulatory subset of CD4 + cells, the Tr1 cells, in an IL-27-dependent manner in vitro and in vivo. In a functional demonstration, tolerance elicited by engagement of TRPV1 can be transferred to naïve nonobese diabetic (NOD) mice [model of type 1 diabetes (T1D)] by transfer of CD4 + T cells. Further, oral administration of AEA to NOD mice provides protection from T1D. Our study unveils a role for the endocannabinoid system in maintaining immune homeostasis in the gut/pancreas and reveals a conversation between the nervous and immune systems using distinct receptors.T he endocannabinoid system (ECS) is highly conserved in evolution dating back to at least 600 million years (1). It consists of (i) lipid endocannabinoids; (ii) their receptors such as the G protein-coupled receptors, cannabinoid receptor 1 (CB1), cannabinoid receptor 2 (CB2), and a ligand-gated cation channel vanilloid receptor 1 (i.e., TRPV1); and (iii) the enzymes such as fatty acid amide hydrolyase (FAAH) that regulate the levels of endocannabinoids in vivo (2). The ECS impacts several aspects of mammalian physiology, particularly in the gut. Endogenous cannabinoids such as anandamide (AEA) belong to the N-acylethanolamine family and are synthesized from membrane glycerophospholipids (3, 4). AEA is an intestinal endocannabinoid, which engages its cognate receptors on the enteric nervous system and contributes to control of appetite and energy balance (5). Here, we have unraveled a role of the ECS in regulating immune homeostasis in the gutpancreas axis.The intestinal immune system is continuously exposed to a variety of antigens. An effective immune response must be launched against pathogenic insults; however, it must maintain tolerance to the vast amount of antigens such as those in commensal flora, endogenous metabolites, and food components. Mononuclear phagocytes (MNPs) such as CX3CR1 hi macrophage (Mϕ) and CD103 + dendritic cells (DCs), which are present abundantly in the small intestina...