Angiogenesis is an important process in inflammatory diseases and wound healing. We observed that the proinflammatory neuropeptide, substance P, stimulated angiogenesis in an in vitro model using human umbilical cord vein endothelial cells cultured on a basement membrane (Matrigel) substrate. Substance P stimulated endothelial cell differentiation into capillary-like structures in a dose-dependent manner. Stimulation of endothelial cell differentiation is a newly recognized biological function of substance P. The increased levels of substance P found in chronic inflammatory conditions may play an important role in tissue repair by promoting the development of new vessels and thus achieving compensation for ischemia.