A vapor valve for use in conjunction with the fuel dispensing nozzle for capturing vapors returned through the nozzle to a storage area, the nozzle incorporating a body, a spout extending forwardly therefrom, and the nozzle having an operating latch pin and housing for normally providing for opening or shut-off of the nozzle during a dispensing function, a vapor passageway extending through the spout, communicating into the latch pin housing, and extending through the nozzle body for return of vapors back to a storage area, and a latch ring operatively associated with the latch pin and providing for opening or closure to the vapor port of the latch pin housing to furnish its opening while fuel is being dispensed for return of vapors to a storage area, or when the fuel dispensing function is curtailed, providing for an upward shifting of the latch ring within the housing for closure of its associated vapor port and preventing the escape of vapors to the atmosphere.