The study, led by researchers at the University of Sydney's Brain and Mind Centre in Australia, is thought to be the first evidence of a medical treatment for social impairments in children with autism.
It is also the first clinical trial studying the efficacy, tolerability and safety of intranasal-administered oxytocin in young children with autism.
Autism is a group of complex brain developmental disorders characterised by impairments in social interaction, communication, and stereotypical and repetitive behaviours.
In the new study, 31 children aged three to eight years of age received a twice daily course of oxytocin in the form of a nasal spray.
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"We used some of the most widely used assessments of social responsiveness for children with autism," said Adam Guastella, associate professor at the Brain and Mind Centre.
"We found that following oxytocin treatment, parents reported their child to be more socially responsive at home, and our own blind independent clinician ratings also supported improved social responsiveness in the therapy rooms of the Brain and Mind Centre," he said.
This is the first time a medical treatment has shown this type of benefit for children with autism.
Study co-author and co-director of the Brain and Mind Centre, Ian Hickie noted the new results were a critical first advance in the development of medical treatments for the social deficits that characterise autism.
"The potential to use such simple treatments to enhance the longer-term benefits of other behavioural, educational and technology-based therapies is very exciting," he said.
The study was published in the journal Molecular Psychiatry.