The neuropeptides arginine vasotocin (AVT) and arginine vasopressin are key modulators of affiliation and aggression among non-mammalian and mammalian vertebrates, respectively. Here, we explored AVT's effect on aggression in a wild population of beaugregory damselfish, Stegastes leucostictus, a highly territorial species. Aggression by territorial males towards 'intruders' (bottled fishes) was assessed before and after each male received intramuscular injections of either AVT, Manning compound (an AVT V1a receptor antagonist), isotocin (the teleost homologue of mammalian oxytocin differing from AVT by two amino acids) or saline (vehicle control). Compared to saline controls, AVTand Manning increased and decreased aggression, respectively, while isotocin had no effect. Response selectivity was further established in a dose-response study that revealed an inverted U-shaped function. Compared to saline controls, aggression levels for low and high AVT doses were similar, while medium dose treatments were significantly greater. This type of behavioural response, the first that we know of for a vertebrate neuropeptide, could depend on the binding of AVT to both V1-type and other AVTor non-AVT receptors. The pattern revealed here for damselfish may be symptomatic of species-and context-dependent specificity of AVT's modulation of aggression across teleosts, as is currently proposed for tetrapods.