Abstract: Embodiments disclosed herein relate to compositions and methods for inducing transplantation tolerance using immunomodulation agents. In certain embodiments compositions and methods disclosed herein, concern administering a composition including, but not limited to, anti-CD3 immunotoxin and administering a composition including, but not limited to, peripheral blood cells obtained from a donor of an organ, tissue or cells to be transplanted. In some embodiments, compositions and methods disclosed here can be used for modulating B- and/or T-cell-mediated immunity and/or rejection by reducing or eliminating anti-donor antibody production. Other embodiments concern modulating T-cell production in a subject preparing for, undergoing organ, tissue or cellular transplantation; or having or expected of developing GvHD for reducing the risk of, preventing or treating rejection or GvHD. In certain embodiments, combination compositions of anti-CD3 immunotoxin and peripheral blood cells from a donor are contemplated.