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Vasopressin is an endogenous hormone regulating osmoregulation, now commonly used exogenously as a vasopressor in critical settings. Here we report a rare case of Vasopressin-induced hyponatremia followed by Diabetes Insipidus (DI) in a patient with Wernicke's encephalopathy while being treated for septic shock. Our case is the first description of osmolar disturbance from Vasopressin use in a patient with chronic brain pathology and the successful treatment of the osmolar disturbance with desmopressin.