Inflammatory skin diseases such as psoriasis, which affects up to 4% of the Western population, can be highly debilitating. Current therapies are not consistently efficacious, can be costly and risk substantial adverse effects. New therapies that provide cost-effective and targeted suppression of inflammation are needed. We have uncovered a novel role for a human peptide in modulating and suppressing inflammation. A version of this peptide (called RP23) was produced by chemical synthesis with modifications to enhance ease of production. Culture of primary macrophages with RP23 led to reduced IL-12/23(p40) and IL-6 release after TLR-stimulation. When injected intra-dermally into human skin explants, RP23 reduced activation of dermal dendritic cells. In a mouse model of contact dermatitis, an injection of RP23 prior to sensitisation significantly suppressed elicitation of inflammation. Further, in a murine model of imiquimod-induced psoriasis, RP23 reduced erythema, skin thickness and scaling, reduced T-cells in psoriatic skin and increased the proportion of FoxP3+ CD4+ T-cells in local lymph nodes. Upon application in a topical formulation, RP23 penetrated the stratum corneum and colocalised with cells in the epidermis and dermis of human skin explants. Importantly, topical RP23 significantly suppressed psoriatic disease in mice when given either prophylactically or therapeutically, and synergistically enhanced therapeutic efficacy of topical steroid use. Reductions in disease were isolated to the local area in which RP23 was delivered, unlike topical glucocorticoid or injected monoclonal antibody therapy, which caused systemic immune suppression. RP23 therefore offers potential for development as a novel, locally acting peptide-based therapy for patients seeking improved management of inflammatory skin diseases.