Atopic dermatitis (AD) represents the most common chronic inflammatory skin disease in Australia, with prevalence estimated to be as high as 20% in infants and 7% of the general population. Further, one in five of those affected are considered to have moderate-to-severe disease. Topical and systemic corticosteroids are the most prescribed medications for AD but pose considerable risk of adverse effects. Additionally, while JAK inhibitors, such as baricitinib, have proven effective, their associated costs of production are considerably high. Therefore, the identification of novel and cost-effective treatment approaches would significantly aid in the long-term management of this disease. In this study, we tested the ability of a novel immunomodulatory human peptide (RP23) to treat the murine oxazolone-induced atopic dermatitis model. Mice receiving topical RP23 saw a significant reduction in back skin-fold thickness and scaling compared to untreated, vehicle and scrambled peptide controls. The reduction in scaling was comparable to that of a low-dose topical steroid, 0.01% betamethasone dipropionate (BD). However, unlike BD-treated mice, those receiving topical RP23 had no evidence of systemic immune suppression. Taken together, these results suggest that RP23 represents a potentially new treatment option for atopic dermatitis. Indeed, considering its low cost of production and low toxicity, RP23 could provide superior treatment options for long-term management of this disease.