γ-Aminobutyric acid (GABA) is both a major inhibitory neurotransmitter in the CNS and a product of β cells of the peripheral islets. Our previous studies, and those of others, have shown that T cells express functional GABA A receptors. However, their subunit composition and physiological relevance are unknown. In this study, we show that a subset of GABA A receptor subunits are expressed by CD4+ T cells, including the δ subunit that confers high affinity for GABA and sensitivity to alcohol. GABA at relatively low concentrations down-regulated effector T cell responses to β cell Ags ex vivo, and administration of GABA retarded the adoptive transfer of type 1 diabetes (T1D) in NOD/scid mice. Furthermore, treatment with low dose of GABA (600 μg daily) dramatically inhibited the development of proinflammatory T cell responses and disease progression in T1D-prone NOD mice that already had established autoimmunity. Finally, GABA inhibited TCR-mediated T cell cycle progression in vitro, which may underlie GABA’s therapeutic effects. The immunoinhibitory effects of GABA on T cells may contribute to the long prodomal period preceding the development of T1D, the immunological privilege of the CNS, and the regulatory effects of alcohol on immune responses. Potentially, pharmacological modulation of GABA A receptors on T cells may provide a new class of therapies for human T1D as well as other inflammatory diseases.