Umbilical cord blood (UCB) is now widely accepted as a source of stem cells in patients with malignant hematologic and genetic disorders. We have recently reported that in a series of 30 pediatric UCB transplant recipients comparable outcome to that anticipated with other unrelated stem cell sources. In our series, however, the probability of GVHD for grade III-IV was 9% and no UCB recipient developed chronic GVHD. The reason for the low incidence of GVHD after UCB transplantation is not fully understood. Because functional NK cells are among the first population of lymphocytes to be detected in UCB transplant recipients, 2 months post-transplant on average, we wanted to establish whether NK cells could be implicated in reducing the risk of GVHD. Here, we confirm that early NK cells detected in UCB transplant recipients activate the granzyme/perforin lytic pathway and, in addition, they can mediate Fas/Fas ligand (FasL) activity, a finding not previously reported. Both pathways develop simultaneously and are detectable months before the other lymphocytes, notably CD8 are fully functional. Our contention, therefore, is that the low GVHD observed in UCB recipients may be partially due to early NK cells.