Hand, foot and mouth disease causes a rash and painful blisters, but in some cases results in brain infections which can be fatal.
A trial involving 10,000 children, published in the Lancet, showed the vaccine was 90 per cent effective against enterovirus 71 (EV71) that can cause the disease.
However, it does not offer protection against other viruses such as Coxsackievirus A16 and even other strains of EV71, that result in the disease, BBC News reported.
Researchers in Jiangsu province and Beijing tested the vaccine made from a deactivated EV71.
Two jabs were given to children between six and 35 months old. They prevented 90 per cent of cases of hand, foot and mouth disease caused by EV71.
"Infection with EV71 is of particular concern because it can cause severe disease and even death in children. The EV71 vaccine could help prevent hospital admissions and severe cases," the researchers said.