Abstract: A vapor recovery liquid dispensing nozzle having a primary vent passage, a portion of which extends outwardly through the wall of the liquid discharge tube and a normally closed vent valve in the primary vent passage. The normally closed vent valve being located on the filling tube and having a vent valve member movable between a closed position closing the primary vent passage and an open position in which the primary vent passage is open. The shroud which surrounds the liquid discharge tube engages the vent valve member to move the vent valve member between the open and closed positions in response to movement of the shroud between its extended position and its retracted position such that the primary vent passage is closed to prevent the flow of liquid through the filling tube when the shroud is extended and is open to permit the flow of liquid through the filling tube when the shroud is retracted.