True. While oxytocin's classical physiological roles are in stimulating uterine contractions during labor and milk ejection during lactation (the 'milk let-down reflex'), research over the past few decades has established its important role as a neuromodulator in the brain. Oxytocin, produced in the hypothalamus and acting centrally, is involved in a wide range of social behaviors. It promotes maternal-infant bonding, pair bonding in monogamous species, trust, empathy, generosity, and the ability to interpret social cues. It reduces fear and anxiety responses in social contexts and is sometimes called the 'love hormone' or 'bonding hormone.' These effects are mediated by oxytocin receptors in various brain regions, including the amygdala and nucleus accumbens. This dual role—peripheral for reproduction and central for social behavior—highlights the interconnectedness of physiological and psychological processes.

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