Abstract: A deterministic mathematical model to explore the impact of vaccination on the transmission dynamics of avian influenza both in birds and humans is studied. Vaccinations are important prevention and control measures for the spread of avian influenza. A reproductive number R for the model is defined and it is found that the DFE (Disease Free Equilibrium) is stable provided R<1 and it is unstable if R≥1 Also, if R>1 endemic equilibrium point exists and it is locally asymptotically stable. By stability analysis of ordinary differential equation, the criteria for global stability of DFE and endemic equilibrium are also obtained. By computer simulation it is found that if the growth rate at which vaccine based immunity wane increases, the infective human population decreases. Also, sensitivity analysis of the endemic equilibrium point is carried out.