Vasopressin is a synthetic analog of antidiuretic hormone that acts on V1 receptors on vascular smooth muscle cells causing potent vasoconstriction, thereby increasing systemic vascular resistance and arterial blood pressure. It also stimulates V2 receptors in renal collecting ducts, enhancing water reabsorption which reduces urine output and concentrates urine. These combined effects restore vascular tone and fluid homeostasis, improving hemodynamics in shock and reducing polyuria in diabetes insipidus.